A.Rafay
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ISLAMABAD: The government appears to have decided to gradually do away with the CNG industry. For this purpose, the Ministry of Petroleum and Natural Resources (MoPNR) will pitch a plan to phase out the industry in a meeting of the Economic Coordination Committee (ECC), said a senior official of the ministry.
Under the plan, which has been hammered out by top mandarins, vehicles of more than 800cc will be barred from using CNG as fuel. Furthermore, gas price will be increased to a maximum of 80 percent of petrol parity price with zero operating cost of CNG.
The plan further recommends that the supply of gas to CNG stations be disconnected for two months during winter. The official said that the ministry also wants the supply of CNG to be limited to taxis hence excluding private vehicles. Moreover, the plan recommends that CNG stations, which have completed the period of 15 yeas of operation, be disconnected and their supply should not be restored.
In view of the ongoing CNG crisis in the country, Ogra submitted a new CNG pricing formula on November 29, 2012 with the MoPNR seeking input in terms of policy guidelines. However, the MoPNR rejected the formula saying the operating cost of Rs7.90 per kg of CNG worked out by the regulator was not acceptable. The ministry, headed by Dr Asim Hussain, decided to fight the CNG case in the ECC.
Earlier in the meeting of the NA committee on petroleum and natural resources on Monday, Giyas Paracha, chairman of All Pakistan CNG Association, said that CNG stations were experiencing a loss of Rs10 to 19 per kg at the existing CNG prices. CNG entrepreneurs were paying Rs57.02 per kg CNG as price and taxes to the government.
The production cost of CNG out of raw gas stands at Rs12.78, whereas cost on maintenance of machinery and other unavoidable expenses is Rs13.12 per kg.
Chairman Ogra, Saeed Khan, said in the meeting that the government had done way with the agreement it had with the CNG association on CNG pricing. He said that the regulator had sent a new CNG pricing formula to the government, seeking input in terms of the guidelines. Without approval of the new formula, the notification about price would carry no legal weight.Khan recommended providing CNG only for rickshaws, taxis and public transport vehicles.
Ministry pitches plan to phase out CNG industry - thenews.com.pk
Under the plan, which has been hammered out by top mandarins, vehicles of more than 800cc will be barred from using CNG as fuel. Furthermore, gas price will be increased to a maximum of 80 percent of petrol parity price with zero operating cost of CNG.
The plan further recommends that the supply of gas to CNG stations be disconnected for two months during winter. The official said that the ministry also wants the supply of CNG to be limited to taxis hence excluding private vehicles. Moreover, the plan recommends that CNG stations, which have completed the period of 15 yeas of operation, be disconnected and their supply should not be restored.
In view of the ongoing CNG crisis in the country, Ogra submitted a new CNG pricing formula on November 29, 2012 with the MoPNR seeking input in terms of policy guidelines. However, the MoPNR rejected the formula saying the operating cost of Rs7.90 per kg of CNG worked out by the regulator was not acceptable. The ministry, headed by Dr Asim Hussain, decided to fight the CNG case in the ECC.
Earlier in the meeting of the NA committee on petroleum and natural resources on Monday, Giyas Paracha, chairman of All Pakistan CNG Association, said that CNG stations were experiencing a loss of Rs10 to 19 per kg at the existing CNG prices. CNG entrepreneurs were paying Rs57.02 per kg CNG as price and taxes to the government.
The production cost of CNG out of raw gas stands at Rs12.78, whereas cost on maintenance of machinery and other unavoidable expenses is Rs13.12 per kg.
Chairman Ogra, Saeed Khan, said in the meeting that the government had done way with the agreement it had with the CNG association on CNG pricing. He said that the regulator had sent a new CNG pricing formula to the government, seeking input in terms of the guidelines. Without approval of the new formula, the notification about price would carry no legal weight.Khan recommended providing CNG only for rickshaws, taxis and public transport vehicles.
Ministry pitches plan to phase out CNG industry - thenews.com.pk
