ISLAMABAD: Tensions between the CNG industry and the government may intensify further as the petroleum ministry mulls imposing a new tax on CNG consumption to bring its price at par with petrol.
The Supreme Court had earlier suspended the mechanism linking the price of CNG with petrol, ruling that the two could not be linked as CNG is produced domestically, while petrol is imported.
“We are considering imposing a new equitable tax on CNG, to make its price equitable with that of petrol,” Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain stated, while briefing the National Assembly’s Standing Committee on Petroleum and Natural Resources.
“The government is committed to gradually phase out the CNG sector, as the country does not have sufficient gas reserves,” Hussain said; adding that the government is devising a policy in this regard.
He also criticised the Oil and Gas Regulatory Authority (Ogra), saying “it failed to deliver”.
During the meeting, the parliamentary panel expressed serious concerns over the shutdown of CNG stations and disagreements between Ogra and the All Pakistan CNG Association (APCNGA) over the gas pricing mechanism.
Legislators argued that Ogra and APCNGA were clinging to their stances while consumers are forced to wait hours in long queues for fuel for their vehicles.
The standing committee handed over the issue to a subcommittee working under the chairmanship of Jamshed Dasti, and directed an immediate report on the issue.
Petroleum Secretary Dr Waqar Masood said the government was working to restore the earlier system of linking the CNG price with petrol by imposing a new tax on the CNG sector.
He said that a flare gas policy was in the final stages of preparation, and that its draft had been sent to all stakeholders for their input. He said that the policy has been discussed with gas companies and they have expressed satisfaction with it.
Published in The Express Tribune, November 29th, 2012.
COMMENTS (4)
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@ Kamran,
You clearly have no idea what APACNG is and what it is dealing with these days. It is amazing how our people always start blaming anyone they can. You have to remember APACNG is the body who gave you the luxury of a low cost fuel. It is OGRA and the government who has failed to regulate, failed to catch people stealing gas and most importantly they have failed to see the bigger picture regarding the number of CNG stations that should be operating.
I know we can only expect incompetence of such great magnitude from a corrupt government like this but I fail to understand how the people of our country think and how they are ready to point finger in an instant without doing any research.
Another collusion between OGRA and APCNGA.... Both are backed by PPP! Guess who emerges winner in this noorakushti ??
And they call PPP govt as PEOPLE FRIENDLY!!! They are making lives of poor people MISERABLE!!!!!!
It is a shame to see something that we can produce ourselves and don't have to beg for being fallen victim to conspiracy of a few influential people. The LPG and the fertilisation sector are sucking the blood out of our gas reserves. On top of that they amount of gas they steal is less then the total consumption of the cng sector.
The country is a nightmare for business men. More then two decades ago the government abolishes duty on the CNG equipment and encourages. Concerns from the CNG sector were expressed to OGRA in the early growth phase of the cng sector regarding the amount of CNG stations within a radius of 3 km. It was proposed that not more than 4 CNG stations should be allowed to operate within a radius of 3-4Km's.
For all the people who think that CNG owners are crooks and are adding to the misrey to the people. Let me assure you that the CNG owners are in the same boat and the last few years have been extremely tough on the owners. The owners who do have it easy are the ones that steal gas!. They steal gas and then they give discounts on their CNG's making people think that CNG is an extremely profitable business. It is hardly profitable if you operate in an honest manner.
I hope the people of Pakistan can see the bigger picture & I hope that the corrupt government does not sacrifice the livelihood of millions of people (Owners, workers, consumers) just for the interest of a few big guns!