New pricing formula: OGRA hires firm for audit of CNG stations

Avais Hyder Nauman Liaquat to submit report within 4 days.

ISLAMABAD: Following Supreme Court orders, the Oil and Gas Regulatory Authority (Ogra) awarded a contract on Thursday to a chartered firm to conduct an audit of CNG stations, in order to determine a new pricing formula.

Eleven CNG stations in rural and urban areas will be selected to evaluate profits and returns earned by them in order to determine the new pricing formula.

An Ogra official confirmed that the firm, Avais Hyder Nauman Liaquat Chartered Accountants, would present the audit report within four days.

The audit is being conducted as a short-term measure, while a long-term audit would be conducted later.

A spokesperson of Ogra said that nine parties had participated in the biding process to conduct the audit to examine the profits, return and cost of CNG stations. However, it was awarded to the lowest bidder –Avais Hyder Nauman Liaquat, he added.

The spokesperson also maintained that an advertisement has been issued for a contract to conduct an audit of CNG stations on a long-term basis.

Following orders of the Supreme Court, Ogra had cut CNG prices over Rs30 per kilogramme – a move rejected by the All Pakistan CNG Association (APCNGA).

However, the Supreme Court directed the regulatory authority to maintain the new price till November 19.

“Ogra will submit an audit report regarding the profits and cost of CNG stations to the Supreme Court in the next hearing,” the official said.

Published in The Express Tribune, November 9^th, 2012.