After the government agreed to reduce gas load shedding by eight hours, gas cess by 10 percent and to extend the limit of installation of certified Compressed Natural Gas (CNG) kits and cylinders in public service vehicles (PSVs) by one month, the CNG and transport associations announced an end to their strike call immediately.
An official source said the prime minister was annoyed with the Petroleum Ministry for its failure to reach an agreement with the CNG and transport associations on Monday. The petroleum secretary was told to resolve the issues with the associations and make them withdraw their strike call. After the prime minister’s directions, Petroleum Secretary Ejaz Chaudhry again convened a meeting of the stakeholders, as there was no public transport on the roads in the twin cities on Tuesday. Transporters tried to block the roads early in the morning but they were dispersed after heavy police deployment. CNG stations in Punjab and Khyber Pakhtunkhwa observed a complete strike, which added to the commuters’ misery.
Addressing a joint news conference after a lengthy meeting, the petroleum secretary said all issues with the associations were resolved and they had decided to withdraw their strike call. He said it was decided that the CNG holidays would be held for two days and would be over by 10 pm on the third day. He said it was decided that the gas infrastructure development cess would be further reduced by 10 percent from 60 percent. Oil and Gas Regulatory Authority (OGRA) would issue the notification on Wednesday. The meeting also decided to give another month to PSVs to install certified CNG kits and cylinders.
About the reduction in gas prices, he said a committee was formed to review the pricing formula to be submitted to the Economic Coordination Committee (ECC) for final decision, as the ministry could not make a decision on its own. He said if it was approved by the ECC, it would be implemented. All Pakistan CNG Association (APCNGA) Chairman Ghiyas Paracha and Transport Association Chairman Farooq Awan said the government has accepted their demands so they were taking back their strike call in Punjab and Khyber Pakhtunkhwa. Paracha said the government had accepted all their demands and they had been assured that no one-month ban on gas supply would be enforced.
The petroleum secretary said the gas cess was imposed after consultations with all stakeholders including the APCNGA and had been implemented across the board on all sectors to end distortion in gas prices. He said the government was not trying to strangulate the CNG sector and would not shut down gas supply to CNG stations for a complete month.
