A thousand stations will shut down if prices are not changed: CNG Association

The CNG Association has presented a pricing formula to Oil and Gas Regulation Authority (Ogra) on Wednesday, threatening to close down a thousand CNG stations if prices are not reviewed, reported Express News.

According to All Pakistan CNG Association Chairman Abdul Ghyas Paracha, Ogra has been informed through talks regarding the pricing of the gas as well as the loans taken from banks.

He demanded that Ogra should provide them with profit after working out the production price as per the Supreme Court’s orders, and then the CNG price should be determined.

Following a Supreme Court verdict on CNG and petrol price assessment case, Ogra had slashed the CNG price by around 33%. However, CNG dealers claim that the cumulative cost of CNG for them, including the price charged by the gas company, taxes and the operating cost, was more than what is calculated by the authority.

On Tuesday, Ogra served show-cause notices to 44 CNG stations over suspension of operations at new prices following the Supreme Court.