Apropos the news items published on Tuesday, Apr 19, 2016 by a section of media pertaining to remarks from All Pakistan CNG Association (APCNGA), Pakistan State Oil (PSO) categorically refutes the false statements and maintains that such mala fide actions are aimed at damaging the reputation of a responsible national institution like PSO. The fact of the matter is that the chairman of APNCGA has twisted the facts and there is no veracity in the news that PSO is demanding illegal payments from CNG operators.
It is made clear here that the OGRA letter referred to in the article did not refer to any pricing or rent issue rather it advised to initiation of process of renewal of explosive licenses or cancel lease/franchise agreement of CNG stations whose explosive licenses had expired to ensure safety of CNG stations.
PSO gives top priority to safety at its forecourts and it was PSO which informed OGRA, CIE, SSGCL and SNGPL vide their various letters in 2013 and 2014 that some CNG stations are operating without having valid explosive licenses hence gas should be immediately disconnected of those CNG stations until compliance of Rules/Law is made.OGRA being the regulatory authority should intimate Explosives Department to take action against those CNG stations where Explosives Licenses are expired. However, no action was taken against the CNG stations violating rules/law rather PSO was advised to cancel the franchise agreements of stations not adhering to the law.
PSO has already clarified in earlier rebuttals published on April 13, 2016 that CNG operators are bound to pay pre-defined percentage of actual quantity of gas sold at CNG stations for each month to PSO and their dealers in accordance with the terms and conditions laid down in the CNG License Agreement signed between PSO and CNG operators. Some of CNG operators have committed willful default and breach of the Agreements by not paying PSO CNG monthly share, hence PSO’s outstanding CNG receivables has increased to an alarming level of approximately Rs. 912 Million as of March 31, 2016, causing detrimental impact to the national exchequer.