All Pakistan CNG Association (APCNGA) has withdrawn its call for strike on July 13, 2011 after negotiating an increase of eight rupees per kilogram in the price of Compressed Natural Gas (CNG) with the government.
Talking to reporters after the meeting, Petroleum Minister Dr. Asim Hussain and Chairman APCNGA Ghiyas Abdullah Paracha said that the issue of CNG price was amicably settled with the agreement that a price parity of 45 per cent for CNG as compared to petrol would be maintained. An increase of 18 per cent or eight rupees per kilogram would be made in CNG prices.
The prices of CNG would increase from Rs59.08 to Rs67.62 per kilogram in the Potohar region and from Rs56.300 to Rs64.18 per kilogram in Punjab and Sindh. The changes in price would be implemented after approval from the cabinet.
The Petroleum Minister said that the shortage of gas would be equally shared by all the sectors. “There is no way out. They will all have to share the burden”, he said.
For countering the shortage of gas, he said, use of liquefied petroleum gas (LPG) would be encouraged in the country. Conversion of CNG stations to LPG auto gas is under consideration. The Hydrocarbon Development Institute Pakistan (HDIP) that played a key role in the promotion of CNG was tasked with the promotion of LPG.
He said that public sector gas utility companies have been directed to set up their own LPG companies. This would help break the monopoly and cartelization of the private sector. Sui Southern Gas Company has been directed to make a bid for the upcoming transaction of Progas, a private sector company which has its own LPG import terminal, storage and filling facilities located at Port Qasim Karachi.
If the company was acquired by Sui Southern Gas its storage of 15,000 tons would be enhanced to 50,000 tons. The import of LPG and selling by public sector companies will help stabilize prices, the minister added. He also said that na import parity price for LPG would be maintained.
LPG price increases by Rs18: The Oil and Gas Regulatory Authority (OGRA) has notified that the new price for imported Liquefied Petroleum Gas (LPG) would enhance the local price by Rs18 per kilogram. The consumer price for imported LPG cylinder for domestic use has been increased to Rs1,450 from Rs1,239 per cylinder. Earlier, OGRA issued notification on July 4, 2011 fixing the price of LPG at Rs105 per kilogram.
Chairman of LPG Distributors Association Irfan Khokhar talking to Pakistan Today said that the notified prices of imported LPG would be used by the marketing companies to fleece the consumers. He said only 13 out of 86 LPG marketing companies have import licenses and they would be selling local LPG at imported prices.
According to OGRA notification due to higher transportation cost in Azad Jammu and Kashmir, Federally Administered Tribal Areas, and Gilgit Baltistan an increase of Rs30 per 11.8 kilogram cylinder will occur. OGRA notification directs all LPG marketing companies to specify whether their dispatched consignment was imported or local. AMER SIAL
