APCNGA demands uniform gas rates, taxation

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ISLAMABAD - All Pakistan CNG Association (APCNGA) on Wednesday proposed options to keep the CNG business viable and keep the emptied pockets of the masses safe from severe economic impact of high price of the commodity. In a statement, the chairman of Supreme Council APCNGA, Ghiyas Abdullah Paracha said that these options have been designed in line with the directives of Supreme Court so OGRA should accept any of the options to fix the prices immediately. Showing his serious opposition to upward revision in the prices of CNG, he said a just profit is our right and majority of the business is being run on the basis of 30 per cent profit. Only the influential station owners having transactions to the tune of billions can operate their business on reduced prices, he said.

Ghiyas Abdullah Paracha also said,” we will make our formula part of the OGRA’s public hearing scheduled on Nov 23 at Lahore”, adding that OGRA is free to impose prices recommended by the auditor provided our four major reservations are addressed.

Giving details of the reservations, he said that profit margin should be rationalised and repressive taxation should be abolished. Similarly, CNG sector should be charged for gas in same tune as other sectors are being charged. He also said that the auditor only showed average sale of the CNG filling stations as 74000 kg which is not more than 51600 kg.

Chairman Supreme Council APCNGA also said that the options forwarded by the APCNGA are not new but are already being practiced in other sectors. He said that fertiliser sector is getting gas for Rs 116.27 per mmbtu and is paying Rs 100 as Gas Infrastructure development Cess (GIDC) which if introduced in CNG sector will bring prices down to Rs 48.15/kg in Region 1 and Rs 46.80/kg in Region 11. About the second option, he said country’s industrial sector is paying Rs 460 per mmbtu and Rs 50 as GIDC which if imposed for CNG sector will suggest setting prices at Rs 69.79 in Region 1 and Rs 66.63 in Region 11.

Paracha said that private power producers are getting gas at Rs 460 per mmbtu and is paying Rs 100 as GIDC. Uniform gas rates and taxation will result in lowering the CNG price in Region-1 to Rs 43.47 and Rs 70.00 in Region-11.

He said that there is nothing new in this formula and similar rates and taxation are already being practiced in other sectors therefore there is no room left for anyone to raise any objection.

Acting upon the APCNGA formula will streamline CNG prices, bring uniformity in the tax ratio among all natural gas utilizing sectors of the country and also provide much-needed relief to masses, Ghiyas Abdullah Paracha added.


Courtesy: The Nation

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