With ECC air-mix decision, CNG body fears rise in cost

ECC allows pumping of LPG air-mix into natural gas pipelines.

ISLAMABAD: Owners of compressed natural gas (CNG) filling stations have rejected a recent decision taken by the Economic Coordination Committee (ECC) of the cabinet that allows mixing air with liquefied petroleum gas and its injection into natural gas pipelines to tackle gas shortages.

“This will send cost of doing business higher and leave our products uncompetitive in international markets, causing further strain on foreign exchange reserves and widening trade deficit,” said Ghayas Abdullah Paracha, Chairman Supreme Council of All Pakistan CNG Association, said in a statement on Thursday.

He claimed that the ECC decision, which came despite opposition by the Oil and Gas Regulatory Authority (Ogra) – the oil and gas industry regulator, would increase the cost of gas by 10%.

The price hike, he said, would not stop here and would lead to an increase in prices of bread and the cost of living, pushing many people below the poverty line.



He said the move ran contrary to national interests and termed it a conspiracy, which would benefit few influential people as they would be pocketing billions of rupees annually.

He warned that scores of businesses would also close down, sparking unemployment and law and order problems in the country.

Fearing that a ‘massive scandal was in the making’, Paracha asked the Supreme Court to take notice of the development and protect the interests of consumers.

He suggested that direct use of LPG would be more economical and mixing it with natural gas would only cause a sharp rise in the cost of gas, which would even become expensive than furnace oil.

“No country in the world, except for Argentina, is using air-mix plants as they have proved to be the costliest solution to gas shortages in the presence of efficient ways,” he said.

While questioning the pace of implementation of the decision, Paracha rejected the government’s claim that the consumers would not be burdened.

Published in The Express Tribune, January 18^th, 2013.

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