LAHORE: Producers are bound to reduce prices of natural gas if crude price falls below $40 per barrel as per an agreement with the government, the All Pakistan CNG Association (APCNGA) said on Wednesday.

APCNGA leader Ghiyas Paracha said crude prices were below $40 since December 2015 and touched $26 dollars, averaging $34.20 per barrel.

This warrants an immediate reduction in price of natural gas, he said.

He further said the prices of RLNG in Punjab must be reduced to provide relief to consumers.

Calling liquefied natural gas (LNG) import a revolutionary step, he said that this move will cut down power outages and revive industry. It will also balance the energy mix which is heavily tilted towards oil, he added.

Paracha said the gas infrastructure development cess (GIDC) was declared illegal by the superior courts and hence it should not be imposed anymore.

Removal of GIDC will attract investment, trigger economic growth providing jobs and enhanced revenue, he added.

Meanwhile, high ranking government officials claimed that GIDC funds were not being used for LNG project and LNG pipeline and therefore there was no justification of imposing the cess.

Published in Dawn, March 10th, 2016