CNG price may increase by Rs10/kg from 1st

The price of Compressed Natural Gas (CNG) could go up by Rs 10 per kilogramme from November 1, media reports said on Monday. A private TV channel quoted its sources as saying that the Oil and Gas Regulatory Authority (OGRA) and All Pakistan CNG Association (APCNGA) were scheduled to meet on Tuesday (today) to fix a new formula of CNG pricing in line with the Supreme Court’s order last week. A final decision, meanwhile, will be made after the Supreme Court’s hearing scheduled for Thursday. Last Thursday, the government slashed CNG prices by Rs 30 per kilogramme following the Supreme Court’s order of suspending the operating cost and profit of CNG association. The court ruled that the operating cost being charged by the CNG association was unrealistic. The apex court also asked the government to de-link the prices of CNG from petroleum products in the international market. Meanwhile, APCNGA Chairman Ghiyas Paracha on Monday said the Petroleum Ministry informed the Supreme Court regarding the operating cost borne by CNG stations, but did not mention the revenue in billions of rupees earned by the government. Talking to reporters, he said that the association would move the Supreme Court in this regard, while at the same time, the court had summoned representatives of CNG stations today (Tuesday). “The Ministry of Petroleum receives Rs 80.012 billion in general sales tax (GST), gas infrastructure development subsidy and gas development subsidy,” he added. Paracha said the Petroleum Ministry had imposed 25 percent GST on the CNG sector, while the Federal Board of Revenue (FBR) had fixed it at 16 percent. “Other than that, the ministry has also applied gas development subsidy and gas infrastructure development surcharge on the 3.5 million consumers using CNG-fitted cars,” he said. “The GST collected by the government amounts to Rs 26.6046 billion, the gas infrastructure development subsidy amounts to Rs 24.604 billion and gas development subsidy amounts to Rs 28.787 billion.”