The Oil and Gas Regulatory Authority (Ogra) has started the audit of CNG stations to determine their profit margins following the Supreme Court orders. Sources in the authority said here on Saturday that the audit firm, Avais Hyder Liaquat Nauman Chartered Accountants, would complete the audit of selected CNG stations by November 14. The audit report would be submitted to the apex court on November 19.

As many as 11 CNG stations have been selected from rural and urban areas for the audit in the first phase. As many as 350 stations will be audited in the second stage. A detailed report will be submitted after completion of both phase audit. According official data, there are over 3,500 CNG stations and 3.5 million vehicles using CNG as fuel. It is also learnt that the Petroleum Ministry had suggested to Ogra to cut the "production cost" of CNG stations.

Criticising the massive decrease in CNG prices, office-bearers of All Pakistan CNG Association (APCNGA) said that the Rs 30.9 per kg reduction in the commodity price had compelled owners of CNG stations to face a loss of Rs 9 per kg after the Authority abolished "production cost". Sources said that the audit report would determine cost of land, cost of building/civil work, cost of machinery and other costs.

Copyright Business Recorder, 2012