OGRA issues show cause to 44 CNG stations
Warnings issued over station closures following Supreme Court’s directives to cut CNG prices
ISLAMABAD:
The Oil and Gas Regulatory Authority (Ogra) served show-cause notices to 44 compressed natural gas (CNG) stations over suspension of operations at new prices following the Supreme Court.
A senior official of Ogra said that CNG station owners were warned through a public notice to avoid overcharging or shutting down stations after notification of the new prices. He said that the regulator had asked gas utilities – Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) – to report CNG stations which were not complying with Ogra’s instructions.
The gas utilities, performing their duty, had informed Ogra about the closed stations.
“We have issued show-cause notices to CNG station owners over suspending CNG sales after the regulator had notified reduction in prices following the orders of the Supreme Court,” official said adding that Ogra was also going to audit accounts of CNG stations to evaluate their profits following directions of the Supreme Court.
When contacted, All Pakistan CNG Association Chairman Abdul Ghyas Paracha confirmed that Ogra had served notices to 44 CNG stations. He said that the apex court, in its order, had directed to cut CNG prices up to Rs20 per kilogramme (kg) after incorporating impact of suspension of the memorandum of understanding (MoU) inked with the CNG industry and implementing the price of July 2012.
Paracha further said that Ogra was bound to consult stakeholders in line with direction of the judgement to determine the new price; but CNG industry – the major stakeholder – was not taken on board. “According to clause (9) of Ogra Ordinance 2002, the regulator is also bound to consult stakeholders to notify new price,” he said adding that the government had ended the operational costs but did not touch the Rs11.57 per kg price which consumers were paying on account of cross subsidy.
He maintained that government had sealed 44 CNG stations in the area of Hazara and one in Quetta. It was interesting to note that the Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain had suspended chief engineer of SNGPL over failure of taking action against one CNG station in Rawalpindi that was closed due to low pressure.
Published in The Express Tribune, November 7th, 2012.
The Oil and Gas Regulatory Authority (Ogra) served show-cause notices to 44 compressed natural gas (CNG) stations over suspension of operations at new prices following the Supreme Court.
A senior official of Ogra said that CNG station owners were warned through a public notice to avoid overcharging or shutting down stations after notification of the new prices. He said that the regulator had asked gas utilities – Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) – to report CNG stations which were not complying with Ogra’s instructions.
The gas utilities, performing their duty, had informed Ogra about the closed stations.
“We have issued show-cause notices to CNG station owners over suspending CNG sales after the regulator had notified reduction in prices following the orders of the Supreme Court,” official said adding that Ogra was also going to audit accounts of CNG stations to evaluate their profits following directions of the Supreme Court.
When contacted, All Pakistan CNG Association Chairman Abdul Ghyas Paracha confirmed that Ogra had served notices to 44 CNG stations. He said that the apex court, in its order, had directed to cut CNG prices up to Rs20 per kilogramme (kg) after incorporating impact of suspension of the memorandum of understanding (MoU) inked with the CNG industry and implementing the price of July 2012.
Paracha further said that Ogra was bound to consult stakeholders in line with direction of the judgement to determine the new price; but CNG industry – the major stakeholder – was not taken on board. “According to clause (9) of Ogra Ordinance 2002, the regulator is also bound to consult stakeholders to notify new price,” he said adding that the government had ended the operational costs but did not touch the Rs11.57 per kg price which consumers were paying on account of cross subsidy.
He maintained that government had sealed 44 CNG stations in the area of Hazara and one in Quetta. It was interesting to note that the Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain had suspended chief engineer of SNGPL over failure of taking action against one CNG station in Rawalpindi that was closed due to low pressure.
Published in The Express Tribune, November 7th, 2012.