June 06, 2008	Friday	Jamadi-us-Sani 01, 1429

KARACHI, June 5: The government has hinted at levying gas development levy (GDL) on the compressed natural gas (CNG). The new levy, if introduced, would push the gas rates up, said Abdul Sami Khan, chairman CNG Dealers Association.

Addressing a press conference on Thursday he said that the main aim of the government to impose the levy on the pattern of petroleum development levy seems to get revenue from the CNG sector to recover losses accumulated due to high prices of the petroleum products.

He said that the association members had already urged the Oil and Gas Regulatory Authority chairman, and DG Gas and the petroleum ministry to refrain from imposing the levy as the CNG rate will come close to petrol price.

In the meeting held on June 2 in Islamabad, the government officials had also hinted that if the petrol price touched Rs100 per litre, the CNG will be available at Rs75 per kg.

He said that the association was advising its members to suspend further investment in the CNG sector till the government comes out with a clear decision in the budget.

Not only the consumers will suffer by paying higher prices, the investment made by the CNG industry would go down the drain and the consumers’ money invested on CNG kit would be wasted, he said.

He blamed the oil marketing companies (OMCs) for pushing up the case of imposing the levy on CNG.

On other issues, he said, the FBR chairman has been urged to either abolish or reduce the duty on import of CNG spare parts. He added that after rupee devaluation against the dollar the cost of import of CNG spare parts, machinery and others had increased.

He said that dealers were already paying five per cent withholding tax and other levies and they were not in a position to further pay any tax. It should either be abolished or be taken from the OMCs.