OGRA terms indigenous CNG sale in litres illegal




Taking cognizance of the CNG Association’s reported decision to sell CNG in Sindh in litres instead of kilos, the Oil and Gas Regulatory Authority (OGRA) on Tuesday observed that the sale of indigenous gas (CNG) in liters is illegal.

According to an OGRA spokesman, only the imported gas-based CNG (RLNG) has been de-regulated but the CNG stations in Sindh are not using imported gas so far. Therefore, CNG stations that are using local gas for CNG (compressed natural gas) cannot sell in liters instead of kgs.

The authority has communicated to the All Pakistan CNG Association that the maximum sale prices of CNG notified by OGRA on August 31, 2015 are Rs 75.82 per kg for Khyber Pakhtunkhwa, Baluchistan and Potohar region (Rawalpindi, Islamabad and Gujar Khan) and Rs 67.50 per kg for Sindh and Punjab for all indigenous gas based CNG stations. Any CNG Station charging other than the OGRA notified rates is illegal and action shall be taken against violators as per law.

The Authority has further observed that the notification referred to above had been issued under the relevant law and in pursuance of the decisions of the Economic Coordination Committee (ECC) of the Cabinet. “Therefore, all the CNG stations are legally obligated to sell [local gas-based] CNG in kilograms and not in liters.”

In this regard, OGRA has also advised the CNG Association to come up with proposals for consideration of the authority as per law and in accordance with the policy of the government.