The deadlock continued as both parties stuck to their stance and added a new misery to the life of masses. APCNGA pledged to continue its country-wide shut down, a move the petroleum ministry termed unjustified, according to separate statements issued on Wednesday.
The current tax on CNG is about Rs141 per million British thermal units (mmbtu), or about Rs5 per kilogramme (kg) of CNG bought by the average consumer. The 2013 federal budget proposes more than doubling this amount to Rs300 per mmbtu. The new tax would raise retail prices of CNG by at least 6.4%, to about Rs94.35 per kg.
The countrywide strike may come to an end on Thursday if the meeting between the petroleum secretary and representatives of CNG bodies in Karachi ends in a resolution of the tax issue, CNG Station Owners Association Chairman Malik Khuda Bakhsh told The Express Tribune.
“The joint call of all CNG associations has become a shield against the Rs15 per kg increase in price of the fuel,” said All Pakistan CNG Association Central (APCNG) Chairman Ghiyas Abdullah Paracha in the statement.
“This tax will be collected from public’s pocket so it is equally lethal for the public as well” Paracha said. He asked the public to stand with the CNG industry and support the protest against price hikes.
Secretary Petroleum and Natural Resources Muhammad Ejaz Chaudhry termed the shutdown of CNG stations across the country unjustified.
The factual position is that the Ministry of Petroleum and Natural Resources has not imposed any new tax on CNG, says the statement. The increase in Gas Infrastructure Development Cess – part of Money Bill by Finance Division – is proposed to be levied in a phased manner on all sectors.
The secretary also took notice of the gas consumption figure being mentioned by the CNG sector and termed it incorrect. Factual position is that consumption of gas by the CNG sector is increasing day by day and currently stands at over 400 million cubic feet per day (mmcfd). This increase is resulting in the fertiliser and power sector suffering badly, he said.
All Pakistan CNG Association Chairman Ghiyas Paracha said on Tuesday claimed that consumption stood at 261 mmcfd.
Strike hiccup
The only hiccup to the country-wide strike was witnessed in Sindh as one group of CNG representatives did not entirely support the strike call and kept stations open in Hyderabad and interior Sindh.
Dr Zulfiqar Yousufani is leading this group called the Sindh CNG Station Owners Association, representing owners of over 250 stations in upper parts of Sindh.
In a mark of protest against the tax, said, the association members hoisted black flags at their stations, but continued their work as well.
Published in The Express Tribune, June 7th, 2012.
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