CNG Prices decereased

People belong to all walks of life including transporters; traders, teachers, lawyers, students, labourers and the civil society members hailed the decision of the Supreme Court for slashing the price of compressed natural gas (CNG) by Rs30.90 per kilogram. People demanded implementation of the orders and availability of CNG at filling stations. The Ogra has also issued a notification, however, All Pakistan CNG Association was reluctant to obey the notification in this regard. The association with the approval of Ministry of Petroleum and Natural Resources announced to open all compressed natural gas (CNG) stations during Eidul Azha from Friday to Tuesday. But, apparently majority of CNG stations were closed on Friday. Some of stations were open but selling the gas at higher prices. It is learnt that owners of the CNG pumps are not ready to sell gas at lower rates despite the clear announcement of Orga saying they had not received any new direction from All Pakistan CNG Association (APCNGA). Muttahida Transport Union (MTU) General Secretary and Twin Cities Transport Association (TCTA) President Sultan Ahmed Awan welcomed the verdict of the SC saying: “The transporters would reduce the fares soon after issuance of the notification by the Punjab Transport Authority (PTA) to provide cheaper travel facilities to the passengers.” He said that transporters and common people were worried because of unjustified hike in the prices of CNG.

CNG stations closed in different cities

Islamabad—Adviser to Prime Minister on Petroleum Dr Asim Hussain warned on Friday that the government would initiate action against owners of CNG stations if they failed to comply with the Supreme Court’s ruling to slash gas prices.

Taking notice of the closure of CNG stations in different cities, Dr. Asim said that teams had been formed to inspect the overpricing and closure of CNG across the country.

He maintained that the government would not allow the CNG mafia to take roots.

He threatened to revoke the licenses of CNG filling stations if the SC ruling was not implemented.

Earlier, All Pakistan CNG Association chief Ghayas Paracha confirmed that CNG supply would resume across the country in line with the Supreme Court’s ruling.

He said that CNG Association would sit with the Oil and Gas Regulatory Association to finalize a new formula for gas pricing.

Paracha said that the CNG owners would have to pay Rs6 to Rs7 from their own pockets under the current price.

Piracha, Chairman All Pakistan CNG Association has said in the statement that they will file a review petition in the Supreme Court on October 30, 2012.

Earlier on Thursday, the Supreme Court of Pakistan directed OGRA to slash CNG prices after it ruled that linkage of CNG with petroleum products was unlawful. Following Supreme Court ruling, OGRA issued a notification of reduction in CNG prices by up to Rs30.90 a kg with immediate. However, despite the notification CNG is being sold at old rates in different parts of the country while many of the CNG stations were closed after the issuance of the notification.

The government has decided to implement the Compressed Natural Gas (CNG) prices in the light of the Supreme Court decision.

According to officials, the Oil and Gas Regulatory Authority (OGRA) has also sent the interim order of the Supreme Court to all chief secretaries and asked them to ensure the sell of CNG on new prices. 

After Eid holidays a contempt of court petition will be filed against the CNG stations violating the court decision.

The new price of CNG would be Rs 61.64 in Region 1 which include Punjab and Khyber Pakhtwankhwa provinces while the new price of CNG in Sindh and Balochistan provinces has been fixed at Rs 54.16 per kilogram.

Following the Supreme Court’s order to reduce price of Compressed Natural Gas (CNG), many gas stations in Karachi closed down on Friday. Most gas stations turned away customers on the pretext of having developed technical faults.

Despite being a public holiday, public transport remained sparse on the roads and people were forced to commute on rooftops of buses.

CNG Dealers Association chairman Abdul Sami Khan said some members had asked him how could they run their business in loss, but the association instructed them to reduce the price and keep their stations open.

Contrary to actual events, CNG Station Owners Association chairman Malik Khuda Bux claimed that all its members had reduced the price and their pumps were open across the country. Some pumps might have been closed because of low gas pressure, but all other pumps were operating normally, he added.

In Lahore, most of the CNG stations of Lahore have been shut down following the reduction in CNG prices on the orders of Supreme Court. This has caused much hardship to vehicle owners as well as public. 

A few CNG stations which are opened are not complying with new price. Scuffle between consumers and station admin was also reported at few stations after the latter insisted to pay the old price of CNG.

However, chairman CNG association (Punjab) Shujah Anwar said that Supreme Court had ordered to bring back the CNG prices to July 1 level, adding that secretary petroleum and OGRA were creating confusion on the matter.—Agencies

SC ruling cheers consumers: CNG dealers express reservations

 A reduction of Rs30.89 per kg in the price of compressed natural gas (CNG) by the government on the order of the Supreme Court stunned the CNG stakeholders on Thursday.

“We respect and accept the Supreme Court’s decision and have also implemented the decision regarding cut in prices of green fuel all over the country,” chairman CNG Station Owners Association Chairman Malik Khuda Bux claimed rejecting the reports of going on strike on Friday.

He said that Oil and Gas Regulatory Authority (Ogra) had called upon a hearing on October 30 in Islamabad on the CNG-related issues. The association will discuss the pricing in the hearing.

Chairman CNG Dealers Association Abdul Sami Khan welcomed the decision regarding cut in tax on CNG but said the sharp decline in profitability would collapse the sector.

He said the Supreme Court had taken the decision without consulting the stakeholders. “We are bound to suffer heavy losses,” he said adding that so far there is no plan to go on strike.

“We have to curtail the staff as we cannot sustain huge losses after reduction in the profit,” he said, adding that a big CNG outlet usually employs at least 18-20 people including engineer while a medium size pump has at least 14 employees. Downsizing will be the only way to remain profitable.

Around four million cars and other vehicles are running on CNG and they fill the cheap fuel from over 3,000 stations across the country.

Chairman Consumer Association of Pakistan Kaukab Iqbal said that the Supreme Court’s decision has literally enlivened hopes among the consumers who are already perturbed over their rising cost of living.

He said consumers now eye Supreme Court to take notice of rising petrol, diesel and LPG prices. Besides, he requested the court to also look into the matter regarding surging power and gas rates and its impact on the end users.

President Karachi Chamber of Commerce and Industry (KCCI) Haroon Agar while cheering up court’s decision requested the Supreme Court to also look into the matter regarding petroleum prices which had declined by more than $10 per barrel on the world market.

He also requested the court to consider issues of electricity and natural gas.

Many consumers feel that the issue of two to three days load shedding of CNG should also be resolved. Gas load shedding is creating a lot of problems for many people who have to keep petrol ready in larger quantities in their vehicles.

As a result the sale of petrol is showing positive growth every month while the country is also importing petrol.