ISLAMABAD, April 2: Another showdown between the government and the CNG sector supported by transporters is expected if talks scheduled between the association and the petroleum ministry on Tuesday (today) fail.
A delegation of All Pakistan CNG Association is scheduled to meet petroleum minister Dr Asim Hussain in the morning and in the evening the delegation will be meeting with the transporters at Pirwadhai.
“The talks will fail if the government remains adamant on the exorbitant hike in the petroleum and CNG rates,” said Ghiyas Paracha, the chairman of the association, while talking to the media here on Monday. “This is shameful and inhumane on part of the government and the petroleum ministry that the promises made by secretary petroleum on January 3, 2012, are being violated openly and blatantly.”
Mr Paracha said the government was bagging around Rs4.25 billion daily from the CNG sector which included some Rs2 billion from the high gas development cess and Rs2.25 billon from the recent increase in the gas prices.
He said the unprecedented increase in CNG rates would trigger an inflationary spiral and it would not only hit one sector but the whole economy as there are 3.5 million vehicles operating on CNG in the country. The association after its central executive council meeting here on Monday also decided to file a petition with the Lahore High Court against the recent hike in CNG rates.
“The increase has been made on two accounts and both are either illegal or unfair,” Mr Paracha said, adding one account included increase of gas rates being supplied to the CNG stations.
He said the gas rates were revised by Ogra after a petition was filed by the SNGPL or the SSGC; then there is a procedure which includes holding public hearing over the petition filed by the gas companies.
“How can the government do it by itself and why is Ogra subservient to the petroleum ministry? APCNGA chairman said, adding: “It is also strange to see that both the SNGPL and the SSGC have requested Ogra in their petitions for reduction in gas prices applicable from June 2012 but the ministry has raised gas rates for the CNG sector.”
Meanwhile, an official of the petroleum ministry said there was a written agreement with the CNG association that the CNG rates would be 55 per cent to that of petrol.
However, the APCNGA chairman challenged the claim and said there was no such agreement. “Right in front of media and addressing to the cameras, the senior officials had accepted that the gas development cess on CNG was too much and it would be reduced. It was announced that loadshedding duration would be shortened but they have backed out of all the commitments,” he said. Meanwhile, in a another development political parties held meetings in Rawalpindi to discuss their role in case of a strike call given by the CNG association, transporters and traders.