Auditors’ recommendations: CNG prices may be increased by Rs8/kg
Audit report recommendations to be presented in SC on Nov 19.
ISLAMABAD:
The price of compress natural gas (CNG) is likely to go up by Rs8 per kilogram in light of the forensic audit conducted by a consultant firm hired on directions of the Supreme Court.
The audit report recommendations will be presented in the apex court on November 19.
Currently, consumers are being charged Rs61.64 per kg in Region-I that includes Khyber-Pakhtunkhwa (K-P), Balochistan and Potohar Region (Rawalpindi, Islamabad, Gujar Khan) and Rs54.16 per kg in Region-II comprising Sindh and Punjab (excluding Potohar Region).
The audit conducted by a firm, Avais Hyder Nauman Liaquat, hired by the Oil and Gas Regulatory Authority (Ogra) has recommended an increase of Rs8.73 per kg in Region-1 on account of production costs including Rs4.73 per kg electricity expenses, Rs2 per kg depreciation cost and Rs2 per kg heating value.
After the proposed increase, the price of CNG in Region-1 will go up to Rs70.37 per kg against the existing Rs61.64 per kg.
In Region 2, auditors have suggested an increase of Rs6.73 per kg on account of power charges and depreciation cost. After the proposed increase, the price of CNG will surge to Rs60.89 per kg.
Last Thursday, Ogra had awarded a contract to a chartered firm Avais Hyder Nauman Liaquat to conduct an audit of 11 CNG stations regarding the profit earned by them to determine the new pricing formula following an order of the Supreme Court. The audit firm was asked to submit a report to Ogra within four days.
Following the submission of the audit report, a committee headed by Member Oil Sabir Hussain was formed to examine the report on Tuesday. “After evaluation by the Ogra committee, the report would be submitted to the Supreme Court to determine the new cost of CNG,” sources said.
The audit firm had conducted audit of two CNG stations in each province and two CNG stations in the federal capital to determine the cost of gas and profit made by CNG stations.
After the Supreme Court directives, Ogra had cut the CNG prices by over Rs30 per kg which was rejected by the All Pakistan CNG Association (APCNGA). However, the apex court had directed to maintain the new price of CNG till November 19 in line with the forthcoming audit.
The APCNGA said that audit of CNG stations is a step in the right direction. “The final audit report should be based on all the facets of the CNG business like international and local issues, laws, low pressure of gas, ever-increasing power tariff and opinion of all the stakeholders,” said APCNGA Supreme Council Chairman Ghiyas Abdullah Paracha.
Published in The Express Tribune, November 13th, 2012.
The price of compress natural gas (CNG) is likely to go up by Rs8 per kilogram in light of the forensic audit conducted by a consultant firm hired on directions of the Supreme Court.
The audit report recommendations will be presented in the apex court on November 19.
Currently, consumers are being charged Rs61.64 per kg in Region-I that includes Khyber-Pakhtunkhwa (K-P), Balochistan and Potohar Region (Rawalpindi, Islamabad, Gujar Khan) and Rs54.16 per kg in Region-II comprising Sindh and Punjab (excluding Potohar Region).
The audit conducted by a firm, Avais Hyder Nauman Liaquat, hired by the Oil and Gas Regulatory Authority (Ogra) has recommended an increase of Rs8.73 per kg in Region-1 on account of production costs including Rs4.73 per kg electricity expenses, Rs2 per kg depreciation cost and Rs2 per kg heating value.
After the proposed increase, the price of CNG in Region-1 will go up to Rs70.37 per kg against the existing Rs61.64 per kg.
In Region 2, auditors have suggested an increase of Rs6.73 per kg on account of power charges and depreciation cost. After the proposed increase, the price of CNG will surge to Rs60.89 per kg.
Last Thursday, Ogra had awarded a contract to a chartered firm Avais Hyder Nauman Liaquat to conduct an audit of 11 CNG stations regarding the profit earned by them to determine the new pricing formula following an order of the Supreme Court. The audit firm was asked to submit a report to Ogra within four days.
Following the submission of the audit report, a committee headed by Member Oil Sabir Hussain was formed to examine the report on Tuesday. “After evaluation by the Ogra committee, the report would be submitted to the Supreme Court to determine the new cost of CNG,” sources said.
The audit firm had conducted audit of two CNG stations in each province and two CNG stations in the federal capital to determine the cost of gas and profit made by CNG stations.
After the Supreme Court directives, Ogra had cut the CNG prices by over Rs30 per kg which was rejected by the All Pakistan CNG Association (APCNGA). However, the apex court had directed to maintain the new price of CNG till November 19 in line with the forthcoming audit.
The APCNGA said that audit of CNG stations is a step in the right direction. “The final audit report should be based on all the facets of the CNG business like international and local issues, laws, low pressure of gas, ever-increasing power tariff and opinion of all the stakeholders,” said APCNGA Supreme Council Chairman Ghiyas Abdullah Paracha.
Published in The Express Tribune, November 13th, 2012.