APCNGA presents new gas pricing formula?

Islamabad: The All Pakistan CNG Association (APCNGA) on Wednesday presented a new pricing formula in the session of the federal cabinet’s Economic Coordination Committee (ECC) held to resolve the CNG pricing crisis.

Presenting the operational cost, details of expanses and the new formula, Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA demanded of the government to include production cost in the retail price as per the international accounting laws.

He said that urea sector is getting gas Rs 44.04 cheaper than the CNG sector; Independent Power Producers are getting gas Rs 23.42 cheaper while industry is getting the commodity Rs 26.42 cheaper than the CNG filling stations.

Paracha said that government is charging Rs 14 as GIDC on every kilogram of CNG sold in Potohar, Balochistan and Khyber Pukhtoonkhwa while filling stations in the rest of the country are paying Rs 9 as GIDC which must match.

He added that Government is getting Rs 64.56 from CNG stations in Region I which includes Rs 57.02 as gas price and Rs 7.54 as electricity bill while Rs 54.52 are being charged for the same in Region II.

Ghiyas Abdullah Paracha further informed that average the cost of establishing a CNG filling station stands at Rs 51.8 million while average sale is at 54868 kg per month which must be considered while fixing the prices.

He demanded that CNG stations should be treated at par with the gas companies so that this business remains viable. He also demanded fixing responsibility of delay in announcing prices and losses inflicted upon CNG operators.

He said that Ogra should determine CNG prices while keeping all aspects in mind to reach an acceptable conclusion. It will be unjustified if price of gas and taxation imposed on CNG are not brought at par with other sectors consuming natural gas, he said.