OGRA devises new CNG pricing formula
Region 1 price placed at Rs72.20 per kg and at Rs63.76 per kg for region 2.
ISLAMABAD:
The Oil and Gas Regulatory Authority (OGRA) devised the new pricing formula for CNG on Thursday, with CNG in region 1 placed at Rs72.20 per kg and at Rs63.76 per kg in region 2, Express News reported.
Region-1 comprises Khyber-Pakhtunkhwa, Balochistan and the Potohar Region (Rawalpindi, Islamabad and Gujar Khan) and Region-2 comprises Sindh and Punjab (excluding Potohar Region).
CNG Association Chairman Abid Hayat said that Ogra had informed the association yesterday that they would be sent a copy of the devised pricing formula within two days for consultation, but the association has not received a copy as yet.
Ogra officials said that after completing the hearing, the entire proposal has been forwarded to the petroleum ministry for finalising the formula after rationalising taxes in consultation with the Federal Board of Revenue (FBR).
Sources said that the formula prepared is just a proposed one and not final and the CNG association is expected to be sent a copy today.
If the association agrees, the formula will be finalised and a notification will be issued, added the source.
Ogra officials said the proposal includes a suggestion for rationalising and not ending production costs in the price.
Hayat said that the association had given three proposals to Ogra and expect one of them to be adopted. He said that the parameters defined by the association were after rationalising all aspects of pricing and would accept the given formula even if it left them with a no profit/ no loss situation.
But, he said that if Ogra’s formula left them in loss, they would not accept the proposal.
The Oil and Gas Regulatory Authority (OGRA) devised the new pricing formula for CNG on Thursday, with CNG in region 1 placed at Rs72.20 per kg and at Rs63.76 per kg in region 2, Express News reported.
Region-1 comprises Khyber-Pakhtunkhwa, Balochistan and the Potohar Region (Rawalpindi, Islamabad and Gujar Khan) and Region-2 comprises Sindh and Punjab (excluding Potohar Region).
CNG Association Chairman Abid Hayat said that Ogra had informed the association yesterday that they would be sent a copy of the devised pricing formula within two days for consultation, but the association has not received a copy as yet.
Ogra officials said that after completing the hearing, the entire proposal has been forwarded to the petroleum ministry for finalising the formula after rationalising taxes in consultation with the Federal Board of Revenue (FBR).
Sources said that the formula prepared is just a proposed one and not final and the CNG association is expected to be sent a copy today.
If the association agrees, the formula will be finalised and a notification will be issued, added the source.
Ogra officials said the proposal includes a suggestion for rationalising and not ending production costs in the price.
Hayat said that the association had given three proposals to Ogra and expect one of them to be adopted. He said that the parameters defined by the association were after rationalising all aspects of pricing and would accept the given formula even if it left them with a no profit/ no loss situation.
But, he said that if Ogra’s formula left them in loss, they would not accept the proposal.