Reduction in gas prices Once again, CNG stations close down in protest

Say they are losing Rs23 on sale of a kilogramme of CNG.

SWAT:

Once again, CNG stations remained closed in Swat on Tuesday to protest against last month’s reduction in gas prices. Attendance at schools and government departments remained slim due to shortage of the fuel, as a majority of public transporters were unable to ply their vehicles. Those who could operate on petrol or diesel fuels charged thrice the usual fares, according to commuters.

Call for the strike was given by Swat CNG Owners Association.

Swat CNG Owners Association President Tahir Khan said that due to the price cut, gas station owners are losing between Rs17 and Rs23 on the sale of one kilogramme of CNG. “We respect the orders of the Supreme Court but cannot afford to bear such heavy losses,” he said.

Khan explained that gas is provided at Rs31.07 per kg to the station owners, who have to pay additional Rs13.24 per kg as Gas Infrastructure Development Cess (GIDC) and Rs11.06 per kg as General Sales Tax to the government. Moreover, they incur Rs6 per kg on compressor chemical fee, Rs10 per kg on electricity and pay an estimated Rs4.5 and Rs3.5 per kg to meet the cost of diesel fuel used to run compression equipment and labour respectively. All this combines to a total cost of Rs79.37 per kg of CNG, said Khan, adding that by selling CNG at Rs61.64 per kg means losing a minimum of Rs17.73 on sale of one kg of the fuel.



Khan held the Oil and Gas Development Authority (Ogra) responsible for their loss. “It is due to Ogra’s inflexibility and misinterpretation in court that our businesses are on the verge of collapse,” he added.

Due to the closure of gas stations, attendance in girls’ schools was particularly slim. Nargis Ali, headmistress of a private girls’ primary school, said that less than half of the total students attended school. She said it was because a majority of the students rely on public transportation to commute.



People who had to go to hospitals had it the worst. Abdul Hamid, a resident of Kokaria said that due to shortage of public transport, he had to pay Rs1,500 for a private car to take his ailing mother to the Saidu Group of Teaching Hospitals. On normal days, private vehicles usually charge Rs500 for the journey, he added.

Earlier on October 26, CNG station owners closed down their business to protest against Rs30 reduction in gas prices on orders of the Supreme Court. The stations were reopened after government officials held negotiations with the association.

Published in The Express Tribune, November 28^th, 2012.