OGRA announces new CNG prices, APCNGA unimpressed

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Following the Economic Coordination Committee’s (ECC) approval, the Oil and Gas Regulatory Authority (OGRA) on Tuesday increased CNG prices by Rs 12.80 per kg for Region-I and Rs 11.62 per kg for Region-II.
In a notification, OGRA fixed Rs 74.44 per kg for Region-I, comprising of Potohar, Khyber Pakhtunkhwa (KP) and Balochistan; and Rs 65.78 per kg for Region-II, comprising of Sindh and Punjab.
On December 22, the Supreme Court directed OGRA to come up with a consumer-friendly pricing formula. In its order, the court held OGRA responsible for high CNG prices and observed that the authority failed to protect consumers’ rights.
However, the All Pakistan CNG Association (APNCGA) rejected the new prices. In accordance with approved formula on CNG pricing, the profit of CNG owners has been set at Rs 4.32 per kg. It has also been decided to give Rs 7.22 per kg as cost of electricity and Rs 5.20 per kg under the head operating cost to the owners.
However, the standoff between OGRA and APCNGA will persist as the latter, which used to earn more than Rs 25 per kg, rejected the decision on CNG pricing. Hinting at going on a strike, APCNGA leader Ghayas Abdullah Paracha said it was not a fair and just decision, terming it illogical and against the CNG sector.
He said the latest CNG pricing decision is one-sided and irrational in which demand for uniform gas prices and taxation as well as right to just profit margin were not accommodated. He said, “A cut in taxation would have helped the CNG sector and the masses, which was unfortunately ignored while the hike in power tariff was not accommodated.”
He was of the view that the sub-committee of the ECC formed to resolve the issue had already taken decision in the meeting, adding that the stakeholders were only called to let them know about the decision, which was against the claims of the body.
Paracha said the government seemed uninterested in resolving the crisis and was hell- bent on worsening the situation due to some reasons, he said, adding that the association would challenge the decision in the court. He said further they would also announce a schedule for protests in favour of their demands. The association would give a strike call after two days, he said.
Advisor to Prime Minister Dr Asim Hussain told reporters he was ready to review and revisit the CNG prices. However, he categorically declared that old pricing formula and prices would not be implemented at any cost. He said determination of prices was the mandate of OGRA.