A parliamentary panel has initiated investigations into the use of discretionary funds for gas development schemes in the constituencies of Prime Minister Raja Pervaiz Ashraf and Deputy Prime Minister Chaudhry Pervaiz Elahi.
A subcommittee of the National Assembly Standing Committee on Petroleum and Natural Resources observed during a meeting, chaired by Jamshed Dasti, on Monday that Sui Northern Gas Pipelines (SNGPL) had spent more on gas development schemes in the constituencies of Premier Ashraf and his deputy Pervaiz Elahi.
In this regard, the committee chairman directed SNGPL to submit a detailed report on the funds spent in the constituencies of all parliamentarians, including the prime minister.
The Oil and Gas Regulatory Authority (Ogra) informed the committee during the meeting that the regulator had allowed funds of around Rs5.5 billion for new gas development schemes for parliamentarians. It had also raised the limit of new gas connections for the SNGPL from the existing 168,000 to 400,000.
‘Ban CNG in private cars’
Meanwhile, Ogra Chairman Saeed Khan suggested that Compressed Natural Gas (CNG) be allowed only in public transport and in small vehicles, while private vehicles should be banned from using it. “Cars should be given a period of six months to convert from CNG to other fuel,” he said.
The subcommittee backed his proposal, saying that luxurious private vehicles should be banned from using CNG.
Khan said that the petroleum ministry should have contested CNG prices in the Supreme Court; however, it withdrew the case within 24 hours due to which the government has no basis on which to determine prices.
He further maintained that the petroleum ministry could not give guidelines for CNG prices since only the Cabinet or its body is authorised to do so.
Meanwhile, All Pakistan CNG Association Chairman Ghyas Paracha informed the body that the CNG industry was paying higher price and higher rate of taxes than other industries and consumers. The CNG industry was paying a price of Rs618.55 per Million British Thermal Unit (mmbtu), while the fertilizer industry, IPPs and the industrial sector were paying Rs 116.27, 460 and Rs460 per mmbtu, respectively.
The parliamentary body recommended imposing a uniform tax on all sectors, including CNG, to provide maximum relief to consumers. The body also questioned the use of Gas Infrastructure Development Cess (GIDC) meant for gas pipeline projects.
As the projects, such as the Iran-Pakistan (IP) pipeline project, are not on ground, the petroleum ministry should inform us where the funds were being used, the sub body questioned.
The subcommittee also directed the SNGPL to open 400 CNG stations that had been sealed for violation over the use of a sanctioned load of gas.
Published in The Express Tribune, December 4th, 2012.
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