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CNG association describes talks with Ogra as positive

December 11, 2012

Pakistanis queue with their vehicles as they wait to buy compressed natural gas (CNG) from a government-run CNG station in Islamabad. – AFP photo (file)

ISLAMABAD: The All Pakistan CNG Association (APCNGA) has expressed optimism about the outcome of talks with Ogra officials, saying issues pertaining to the CNG sector will be resolved soon.

A meeting was held on Tuesday between the Oil and Gas Regularity Authority (OGRA) officials and an APCNGA delegation led by its chairman, Ghiyas Abdullah Paracha.

Paracha, in a statement, claimed that the Ogra officials have accepted discrepancy in gas bills of the CNG filling stations and assured its resolution by Dec 13.

He said the CNG operators told the meeting, which took place on the directives of the Supreme Court of Pakistan, that the gas distribution companies were getting inflated price of gas for the last three years in violation of rules and regulations.

The Ogra officials were told in the meeting that petrol pump business was entirely different as far as expenses and other technicalities were concerned, said the APCNGA chief.

Major investment in petrol stations is made by the oil marketing companies while the operators get commission and on the other hand, the CNG station owners have invested entire amount themselves, he said.

Paracha also demanded uniform gas rates and similar taxation on all the sectors.

The Ogra officials said that it was privilege of the federal government and assured to take up the matter with the quarters concerned.

Paracha said that negotiators from both sides could not agree on diesel power generation cost, which had become a compulsory expense due to frequent power outages.

If diesel power generation is not included in production cost, it will result in non-availability of CNG to the consumers during four days when CNG stations are operational, he added.

The CNG owners demanded physical audit of their stations to verify the actual gas cost in Khyber Pakhtunkhwa, Hazara and Balochistan.

Paracha said the CNG owners were of the opinion that just profit was their right which must be considered according to international and national accounting practices.

He was optimistic that all outstanding issues will be resolved soon so the masses could get a sigh of relief.