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.
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