The government has failed to convince the All Pakistan CNG Association from carrying out an indefinite countrywide strike against the government’s plans of imposing a new cess on CNG tariff through the federal budget 2012-13.
A complete strike was witnessed on Wednesday when thousands of CNG stations across the country shut down in protest against the proposed increase in gas infrastructure development cess, slapped in order to import natural gas for bridging the deficit of 2 bcfd.
A statement issued by the APCNGA said they planned to continue their protest on Thursday and no CNG station would be open for customers.
The association had earlier held talks with the government over the cess issue, but after their failure, the association said it would only hold talks if the decision was revoked.
Meanwhile, a statement issued by Petroleum Secretary Ejaz Chaudhry vehemently denied the position taken by CNG Associations for their “unjustified strike”. The secretary said that the strike was uncalled for, unjustified and should therefore be called off immediately.
It said the factual position was that the Ministry of Petroleum and Natural Resources had not imposed any new tax or cess on CNG sector. The proposed increase in gas infrastructure development cess is part of the money bill by Finance Division which is proposed to be levied in a phased manner on all sectors with a rational approach and understanding, the statement said. The secretary also took notice of the incorrect figures of gas consumption by the CNG sector as being propagated by the CNG Association. “The factual position is that CNG consumption is increasing by the day and is at present over 400 mmcfd on systems of both the companies SNGPL and SSGCL. As a result, the fertilizer plants and power sector is badly suffering,” the secretary said. On the other hand, citizens suffered in scorching heat in almost all major cities of Punjab, Khyber Pakhtunkhwa and urban Sindh due to the CNG strike. Long queues of vehicles were seen in major cities late on Tuesday in apprehension of the strike, with some CNG stations charging up to Rs 96.97 per kg from consumers.
However, CNG stations remained opened in some areas of interior Sindh and some parts of Balochistan, where CNG dealers refused to be part of the strike. CNG Association Sindh Chairman Dr Zulfiqar Yousafzai said weekly closure and growing inflation had affected CNG businesses of more than 300 association members. In the ongoing circumstances, CNG dealers were not in a position to bear tax surcharge on gas. The strike affected motorists and commuters, including students, laborers, women, public servants, office goers and factory workers alike. The little public transport available remained jam packed and commuters waiting at various bus stops in Rawalpindi, Islamabad, Lahore, Karachi, Multan, Peshawar and other cities said they were being victimized for no fault. They urged the federal government and CNG dealers to resolve the issue through dialogue.
