ISLAMABAD: The increase in CNG prices under a weekly mechanism is in violation of the Oil and Gas Regulatory Authority (Ogra) Ordinance, 2002, it has been claimed.
Industry sources said that CNG prices cannot be changed without adopting the procedure laid down in the ordinance which binds Ogra from fixing prices after a public hearing with the participation of stakeholders to meet revenue requirements sought by gas utilities.
“Otherwise if government or Ogra increases CNG prices, it will be illegal and unjustifiable as the Ogra Ordinance 2002 section 8, 9, 21 and 43 clearly fixed the procedure of price mechanisms,” an industry source said, adding that the Supreme Court had already given the same decision in National Electric Power Regulatory Authority case.
Chairman of All Pakistan CNG Association Ghiyas Paracha said that determining CNG prices while bypassing the provisions of the ordinance was a violation of the relevant act and an attempt to render Ogra redundant. However, he said that the CNG industry and government had an understanding of linking CNG prices with 60% parity of petrol which had no legal grounds.
Published in The Express Tribune, October 18th, 2012.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ