KARACHI, July 26: The Sui Southern Gas Company (SSGC) has agreed to provide separate gas meters to those CNG stations, which are using gas driven generators to meet their power requirements.

A recent decision by the Federal Board of Revenue (FBR) to implement 4 per cent income tax and 9 per cent value-addition tax on gas consumed in selling CNG to the end-users created anomaly because many CNG stations are also using gas driven engines for power generation at their premises.

In order to remove this anomaly a delegation of All Pakistan CNG Association (APCNGA) headed by its chairman Junaid Makda recently held a meeting with Managing Director SSGC Munawar B. Ahmed.

The members of APCNGA drew the attention of the MD SSGC towards the anomaly and said that this would mean that all station owners, who have based their power generation on gas engines will also have to pay taxes on the raw material (gas) consumed.

As a result of this meeting it was resolved that all such CNG stations will have to apply to SSGC for separate gas meters of power generation and the utility company would give connections on priority and under power generation category.

Both the sides also agreed that all those existing stations, which are generating their power through gas generators/dual fuel will be regularised within one month of submitting an application intimating proper load.

This facility will only be applicable to those customers, who are already using gas generators/dual fuel. In order to ensure transparency the association will provide authentication certificates to such customers for submission to SSGC. It was also assured by the SSGC that no customer or CNG station will be penalised in any manner for regularisation of their gas generators/dual fuel.

The SSGC chief urged the APCNGA to ask their members to immediately approach the utility’s sales department for regularisation of their incremental load. There are many CNG stations, which are running on additional load but have not regularised it so far.

It was also resolved that those stations which have installed additional compressors and have already requested for load enhancement will be allowed to operate additional compressor on “time management” basis upon payment of SSGC quotation charges, till the additional line is reinforced to the existing system.

Those CNG stations, which have provided space for TBS to SSGC will be given a waiver by the utility for the additional running cost for 15 psig connection.

Similarly, in cases where customers (CNG stations) are unable to arrange for the land, it would be the responsibility of the SSGC to negotiate with the concerned authority for obtaining space for turbines.

It was also decided that since GSD comprises of gas charges, meter rent and GST, therefore, GSD will be affected due to increase in GST. However, SSGC will look into the possibility for maintaining status quo.