Pakistan Daily Times reported that the Economic Coordination Committee of the cabinet,which recently met with Dr Abdul Hafeez Shaikh Federal Minister for Finance and Economic Affairs in the chair,approved the recommendations of its sub committee headed by the Minister of Law and Justice regarding formulation of policy guidelines for fixation of CNG price.
The ECC also directed Oil and Gas Regulatory Authority to ensure transparency and public welfare in the pricing mechanism.
Meanwhile,talking to reporters after the meeting,Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain said the Ogra had the authority to fix CNG prices.
Dr Hussain said that CNG stations'owners could not be given old profit margin and it could not be fixed according to their wishes.He said Ogra presented three aspects including value addition or compression,operating cost and margin cost in the meeting.
CNG representatives agreed to two parameters including value addition and margin cost but they disagreed on operation cost.
However,All Pakistan CNG Association has rejected the new CNG pricing formula,terming it illogical,illegal and against the interests of CNG sector.
Mr Ghiyas Abdullah Paracha chairman of Supreme Council APCNGA said that"As a first step,we will challenge the controversial decision in the petroleum ministry and Ogra,while later we will announce schedule for protests to get out demands met."
Mr Paracha said that the latest CNG pricing decision is one sided and irrational in which demand for uniform gas prices and taxation as well as right to just profit margin were not accommodated.
Moreover,he,said that globally accepted accounting principles were violated;CNG filling stations owners were not allowed to fulfill gas cost while the profit of the CNG filling stations were linked to petrol pumps,which is unjust.
He added that a cut in taxation would have helped the CNG sector and the people which was unfortunately ignored while the hike in power tariff was not accommodated.
He said that the sub-committee of the ECC formed to hammer out the outstanding CNG issue had taken decision before the meeting,while the stakeholders were called to let them know about the decision,which was against the claims of the committee.
He further added that no CNG operator could continue business honestly while observing the terms and conditions of Ogra,which will pave way for protest.
