Govt all set to link CNG, petrol price in violation of SC order

Despite clear directions of the Supreme Court (SC), the Ministry of Petroleum and Natural Resource is once again set to link the price of compressed natural gas (CNG) with petrol.
A source in the Petroleum Ministry on Sunday said the ministry had sent a summary to the finance division and the Planning Commission for their comments over the new proposal to increase the gas parity between CNG and petrol to 80 percent from the previous 60 percent. The source said the ministry had decided to move the summary to increase the gas parity in the meeting of the Economic Coordination Committee (ECC) of the cabinet, scheduled for Tuesday (tomorrow), to seek its approval.
The source further said the new proposal was a clear violation of the SC direction that ordered removal of the gas parity between CNG and petrol. The All Pakistan CNG Association (APCNGA) also rejected the proposed gas parity plan and urged the ECC not to approve it.
APCNGA said several countries across the world were promoting CNG as it was environment friendly, but Pakistan’s government was going against the trend. The ongoing gas crisis emerged on October 25 when the Supreme Court ordered slashing of CNG prices by Rs 30.9, ruling that the operating cost charged by CNG retailers was unrealistic. The apex court had also asked the government to de-link the prices of CNG from petroleum products. The order had said since CNG was produced locally and had no connection with the international market, operating costs and present profit on CNG prices was against the law.
The court had categorically ruled that CNG price would not be revised on a weekly basis and there would be no linkage of CNG price with that of petrol.
The bench had also questioned the CNG pricing formula, asking under which formula CNG stations were being allowed to charge an operating cost of Rs 20.83 when they were already gaining Rs 11.19 per kg in profit on CNG sales.
CNG dealers initially accepted the SC orders and continued sales, but soon started shutting down stations in a silent protest. The CNG dealers say they cannot run a business of loss, adding that the government was marginalising the CNG sector in order to promote liquefied natural gas in the country. They also claim the Oil and Gas Regulatory Authority was misleading the Supreme Court against CNG dealers and retailers.