As government officials plot their next moves on the issue, CNG consumers continue to be irked by intermittent supply of the fuel. PHOTO: FILE
ISLAMABAD:
A sub-committee of the Economic Coordination Committee (ECC) failed to develop consensus on a new compressed natural gas (CNG) policy to cope with gas crisis as top guns of the petroleum ministry did not turn up for a meeting held here on Monday.
The meeting was called at the request of Petroleum Secretary Dr Waqar Masood, who in a letter to sub-committee Chairman and Law Minister Farooq H Naek on December 22 asked him to hold an emergency meeting to resolve the CNG price issue, say sources.
“Both the petroleum secretary and Adviser to Prime Minister on Petroleum and Natural Resources Asim Hussain did not attend the meeting, causing embarrassment for the law minister,” an official close to the law minister said.
The meeting has again been called on December 26 that will try to reach a common ground on CNG prices. The auditor, who has conducted audit of 11 CNG stations, has also been summoned.
Monday’s meeting, held under the chairmanship of Naek, assessed pricing formulae presented by the Oil and Gas Regulatory Authority (Ogra) – the regulator.
Ogra Chairman Saeed Ahmed Khan, Director General Gas Shahab Alam, Cabinet Secretary Nargis Sethi, CNG Association representative Ghayas Paracha and CNG Dealers Association Chairman Abdul Sami Khan were present during the deliberations.
According to a meeting participant, the sub-committee agreed that the federal government would have the authority to issue guidelines and Ogra would implement them. It also agreed that representatives of consumer rights associations would be invited to the meeting to take their input for the new pricing formula.
Talking to the media after the meeting, the law minister said the policy would be framed on the basis of evidence and consultation with all stakeholders and determination of gas prices was the job of Ogra. “Ogra will determine prices and inform the Supreme Court accordingly,” he said.
Naek said the stakeholders were asked to prepare working papers as the committee wanted to settle the price issue as early as possible to ease the sufferings of CNG consumers and the general public.
CNG has been in short supply since the Supreme Court ordered a sharp reduction in the price of CNG, leading to closure of many filling stations.
“The price issue has become quite complex. However, the matter will be settled in accordance with evidences and in the light of law,” he said.
Replying to a question, Naek said restricting CNG consumption to public transport vehicles only and fixing CNG price at 80% of petrol price were proposals of the petroleum ministry and the sub-committee would review all aspects before coming up with a reasonable price.
The committee will also discuss other aspects and submit recommendations to the ECC‚ which will then forward those to the federal cabinet for approval.
The ECC, in a meeting held on December 18, had rejected the CNG pricing formula proposed by the petroleum ministry and constituted a sub-committee with the mandate to formulate policy guidelines for the pricing formula.
In this meeting, Naek pointed out that Ogra had powers to determine CNG prices and the petroleum ministry could only give guidelines. He also spoke against fixing CNG prices at 80% of petrol price, saying it would cause price hike and create problems for the ruling party in upcoming elections.
Talking to reporters, All Pakistan CNG Association senior leader Ghayas Abdullah Paracha said comprehensive discussions could not take place in the meeting in absence of the petroleum adviser.
He said 10 million people had been going through a tough time for the last 62 days because of CNG shortage. He, however, termed the meeting a good gesture aimed at resolving the price issue.
Published in The Express Tribune, December 25th, 2012.
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