Home »Fuel and Energy » Pakistan » Ogra recommends rise in CNG prices

The Oil and Gas Regulatory Authority (Ogra), in consultation with representatives of All Pakistan CNG Association (APCNGA), on Thursday recommended to fix the commodity''s price at Rs 74 per kg in region-I, a price increase of Rs 12.36, and at Rs 65 in region-II, an increase of Rs 9.6 per kg. The decision was taken at a meeting between APCNGA representatives and officials of the regulatory body to settle the dispute.

Region-I comprises Khyber Pakhtunkhwa, Balochistan and Potohar region, while Region-II consists of Sindh and Punjab. The meeting was also attended by officials of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL). Sources in Ogra said that final prices would be fixed after the federal government''s formal approval. The official said as per Ogra Ordinance of 2002, the authority was bound to follow policy guidelines of the federal government.

The official said that the body representing CNG stations had requested the authority for the fixing uniform gas rates and similar taxation on all sectors. He said that the authority directed SNGPL and SSGCL for resolving all problems being faced by CNG stations regarding gas billing.

The Regulatory Authority fixed operating cost at Rs 7.9 per kg, electricity cost at Rs 7.21 per kg, profit margin Rs 3.42 per kg, gas sale price in region-I at Rs 31.09 per kg, Gas Infrastructure Development Surcharge (GIDC) at Rs 13.25 per kg, and GST at Rs 11.08 per kg. In region-II, Ogra has proposed gas sale price at Rs 28.4 per kg, GIDS at Rs 9.18 per kg, GST at Rs 9.4 per kg.

Before the Ogra notification of October 25 this year, the CNG sector was getting operational cost of Rs 20.80 per kg, comprising eight components - electricity cost of Rs 10 per kg, Rs 0.59 depreciation cost of machinery, Rs 0.8 on lubricants, Rs 0.59 on services provision, labour cost Rs 3.3 along with Oil Marketing Companies (OMCs) are charging Rs 3.3 per kg for using their brand name if CNG facility and petrol pump are operating together.

According to an APCNGA office-bearer, Ogra has accepted difference in CNG filling stations'' gas bills and assured about resolving the problem. CNG operators believed that gas distribution companies had been getting inflated price of gas since 2009 in violation of rules and regulations.

Copyright Business Recorder, 2012


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