APCNGA crticises Ogra's CNG stations audit report

APCNGA Supreme Council chairman Paracha says report overlooks key issues.


Ppi November 14, 2012

ISLAMABAD: As a standing committee of the Cabinet directed the Oil and Gas Regulatory Authority (OGRA) to sit with representatives of gas station owners and work out a new price for compressed natural gas (CNG), the All Pakistan Compressed Natural Gas Association (APCNGA) on Wednesday expressed reservations on the forensic audit report of CNG stations, terming it flawed.

In a letter sent to chairman Oil and Gas Regulatory Authority (OGRA) about the audit on production costs incurred by CNG filling stations on the directives of Supreme Court, the APCNGA alleged that audit teams have neglected some critical issues which renders the report incomplete.

“The quality of gas provided to CNG outlets has remained an important factor in terms of rate, price and billing but unfortunately this factor has been neglected during the audit,” said Ghayas Abdullah Paracha, chairman of APCNGA in a statement. “Variation in quality of natural gas results in dissimilar billing in different locations of the country resulting in losses,” he added.

The APCNGA chief said that 90 per cent of the CNG stations currently face low pressure which is another major concern for the sector. The excessive cost of gas and electricity bills due to low pressure should also have been taken into consideration for the audit.

Over 2300 CNG stations remain closed for twelve days every month due to gas load shedding causing colossal losses, he further pointed. Only eighteen working days marred with unscheduled load shedding is an additional burden faced by the CNG sector, said Paracha.

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