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CNG prices: ECC sub-committee session remains inconclusive

December 26, 2012

—File Photo
—File Photo

ISLAMABAD: Another session of the federal cabinet’s Economic Coordination Committee (ECC) held to resolve the CNG pricing crisis remained inconclusive yet again on Wednesday, DawnNews reported.

The session was led by the Federal Law Minister Farooq H Naek in Islamabad.

According to ministry sources, the finance ministry refused to reduce the taxes imposed on CNG. The sources also said the taxes had been imposed for the formation of a new gas infrastructure. Therefore, the current financial position did not allow for tax reductions.

The petroleum ministry also refused to reduce the price of the gas used in manufacturing CNG, ministry sources informed DawnNews.

Speaking to media representatives after the session, Naek said that all stakeholders had presented their suggestions on new CNG prices. He added that the issue would be resolved soon.

He further said that the operating costs would be taken into account while setting new CNG prices. The demands of the CNG association would also be considered, he added.

Chairman Supreme Council of All Pakistan CNG Association Ghayas Paracha said that the CNG tariff was Rs 44 per kilo higher in comparison to urea and Rs 26 per kilo higher in comparison to the industrial sector. It was imperative to equalise the prices, he added.

Paracha also said that CNG Association would join the public in protesting against the non-resolution of the CNG issue if it remained unresolved by Dec 31.