The CNG Association said that the Petroleum Ministry informed the Supreme Court regarding the operating cost borne by the CNG stations, but did not mention the revenue in billions of rupees earned by the government, Express News reported Monday.
The association further said that it will go to the Supreme Court in this regard, while at the same time, the court has summoned representatives of CNG stations for tomorrow’s hearing.
The Ministry of Petroleum receives Rs80.012 billion in general sales tax (GST), gas infrastructure development subsidy and gas development subsidy.
The Petroleum Ministry has imposed 25% GST on the CNG sector, while the Federal Board of Revenue (FBR) had fixed it at 16%.
Other than that, the ministry has also applied gas development subsidy and gas infrastructure development surcharge on the 3.5 million consumers using CNG-fitted cars.
The GST collected by the government amounts to 26.6046 billion, the gas infrastructure development subsidy amounts to Rs24.604 billion and gas development subsidy amounts to Rs28.787 billion.
Shortly after Supreme Court's verdict, the Oil and Gas Regulation Authority (Ogra) had issued a notification reducing CNG prices by over a whopping Rs30 – a 33% slash.
According to the notification issued by Ogra, CNG will be sold in Region 1 (Potohar, Khyber-Pakhtunkhwa, and Balochistan) at Rs61.64 per kg (a Rs30.90 price reduction), while the price of CNG for Region 2 (Sindh, Punjab,and its areas excluding Potohar) would be Rs54.16 per kg (a Rs30.38 price reduction).
COMMENTS (9)
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In addition to earlier comments, I place on record the copy of the SC judgement with a simple question; where has the SC in its judgement fixed the price of CNG?. http://www.supremecourt.gov.pk/web/user_files/File/Const.P.33and34of2005.pdf
OGRA playing its own game for LNG promotion. SC gave principle decision, nothing mentioned about price. It was OGRA decision.
The simple question is that whether the Supreme Court issued order in terms of applicable laws or not. If the order is in line with the applicable laws, which it should be as one cannot expect an unlawful order from the highest court, it is justified. Otherwise if it is not in line with applicable laws, the SC should be closed down, as if the highest court in not following laws, then who will follow.
Supreme court has done an act of suicide by entering into price fixing
@Blithe...The quality of CNG supplied to Potohar, Khyber-Pakhtunkhwa, and Balochistan has higher BTU, runs longer, therefore it is expensive...
Its like a beautiful stone put everywhere, but when you pick it up to feel its beauty, what you see is ants and insects below it. That is the state of Pakistan right now.
And this would have continued if the SC had not intervened. Yes, it was obvious what the court did was beyond their mandate, BUT, these are extraordinary circumstances and such a verdict was necessary, IMHO.
Now the inner workings of the petroleum ministry and who is getting what details will start to come out, to the dismay of many a PPP/MQM/PMLN jiyalas
Shouldn't there be a uniform price throughout the country?