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Uniform gas rate to help keep prices of CNG affordable

Lahore: The All Pakistan CNG Association (APCNGA) on Thursday said uniform taxation and provision of gas on equal rates can help keep prices of CNG affordable across Pakistan.

Conspiracies are being hatched to destroy Compressed Natural Gas (CNG) sector which will hurt millions and sink investments to the tune of billions, it said.

The prices of CNG has been delinked from petrol on the directives of the Supreme Court after which legality of Gas Infrastructure Development Cess (GIDC) has become questionable, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA and Central Chairman APCNGA Abid Hayat while speaking at a press conference here.

They said that the Apex Court had directed to reduce price of CNG by Rs 20 but prices were slashed by Rs 31 which amounts to destroying the business of owners of CNG filling stations.

Ministry of Petroleum and Natural Resources and OGRA didn’t reduce any tax and conveniently diverted the entire burden on CNG sector which is unjust, they added.

Ghiyas Abdullah Paracha said that no where in the world the production cost of any business is brought down to zero except Pakistan where this has been done in violation of CNG Production and Marketing Licence by OGRA.

CNG sector is paying GIDC up to Rs 300 mmbtu while industrial sector is giving Rs 50 for the same which is injustice, he said, adding that we are being made to pay 500 per cent additional cess which if identical will help reduce gas price by Rs 13 per kg.

Such a step will not bring any major change in the prices despite adding production cost and profit of the owners CNG stations which are presently unable to pay utility bills and salaries of the staff.

Paracha said that CNG prices were deregulated until 2008 but afterwards mistake of a federal minister get prices regulated while there was no mention of production cost in the whole episode.

He said that Petroleum Ministry has presented one-sided and wrong stance in the Supreme Court to defame and put an end to the CNG sector which was a conspiracy.

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