Despite government overtures, APCNGA presses on with indefinite strike

CNG association members announced their plan to stage nation-wide indefinite strike from mid-night.

ISLAMABAD: The All Pakistan CNG Association (APCNGA) announced on Tuesday that its members plan to go on a strike for an indefinite period force the government to withdraw its decision of increasing rate of Gas Infrastructure Development Cess (GIDC) that would cause hike in CNG prices. This is after the Ministry of Petroleum and Natural resources tried to placate them by announcing an implementation of the cess would occur in phases and after due consultation with stakeholders.

“CNG stations across the country will start observing strike at midnight (12 pm) today that would continue for an indefinite period,” Central Chairman APCNGA Abdul Ghyas Paracha said while addressing a press conference in Islamabad on Tuesday evening.

He urged all political parties including Pakistan Muslim League (PML-N), Pakistan Tehreek-e-Insaf (PTI) and MQM to shun the support of government on the decision of increasing the rate of GIDC, which according to them would crush the CNG industry.

“Industrial forum comprising textile industry, Independent Power Producers (IPPs), fertiliser sector and LPG mafia are behind the conspiracy against CNG sector that is a fuel of low income groups,” he said, adding that the Petroleum Minister and Minister Petroleum were misleading the government on the issue of providing gas to CNG sector.

“CNG sector is paying a higher rate of over Rs850 mmcfd gas compared to the rates being paid by all other sectors,” he complained adding that government claims to provide 500 mmcfd gas to the CNG sector. He challenged the government figures, saying the sector was receiving only 259 mmcfd of gas, almost half of what the government says its allocating to the CNG sector.

Ministry of Petroleum reaches out to CNG sector

Describing the indefinite strikes announced by the CNG Dealers Association against imposition of new levy on CNG Sector as unjustified and uncalled for, the Ministry of Petroleum & Natural Resources clarified on Tuesday that no decision regarding imposition of levy /cess has yet been taken.

The office bearers of all Pakistan CNG Association (APCNGA) were apprised by the Secretary Petroleum during meeting today that the cess will be imposed in phases and on all sectors after due consultation with stakeholders, an official handout said.

It read that the the Ministry of Petroleum has always taken the APCNGA on board while making important decisions and that the concerns of the CNG Sector were always given due weightage since the sector contributes significantly to the national economy in terms of taxes and tariff. The handout maintained that the government's top priority was to supply natural gas to the domestic consumers, while other sectors including CNG, Industry, Fertiliser, Power and Textile Sectors are also regarded as important stakeholders, which are to be supplied with gas on the basis of availability.

Meanwhile, Muhammad Ejaz Chaudhry, Secretary Petroleum said that CNG sector is an important stakeholder and it is expected of them that they will act with a sense of responsibility in this crisis situation. He termed the cooperation of APCNGA and CNG Dealers Association as imperative so that sufficient supply of gas is available for the domestic consumers; therefore, the strike call by the CNG sector was unjustified.