ISLAMABAD - AHMAD AHMADANI - In order to ascertain the cost and profit of CNG stations of the country, an audit firm after conducting emergency audit has submitted its findings and recommendations to Oil and Gas Regulatory Authority (Ogra), sources said on Monday.
Following the orders of apex court ostensibly in order to determine a new pricing formula, the regulatory authority on 8th November awarded a contract to a chartered firm named as Avais Hyder and Nauman Liaquat Chartered Accountants to conduct an emergency audit of eleven compressed natural gas (CNG) stations located in different parts of the country. To examine the profits, return and cost of CNG stations, two CNG stations from each province, while one from federal capital and two CNG stations of Oil Marketing Companies went under audit during last four days as a short-term measure while a long-term audit would be conducted later as an advertisement had already been issued for a contract to conduct an audit of CNG stations on a long-term basis, sources added.
Earlier, the apex court directed Ogra to maintain the new price till November 19. Following the orders of Supreme Court (SC) the regulator had cut CNG prices over Rs30 per kilogram - a move rejected by the All Pakistan CNG Association (APCNGA).
It was also learnt reliably that Ogra is set to submit an audit report regarding the profits and cost of CNG stations to the Supreme Court in the next hearing scheduled on 19th November. Now profit margin of the CNG stations is likely to be decided on the recommendations of the audit report, the sources said, adding, that Owais Haider and Noman Liaquat Company is among the 14 best auditing firms as ranked by the State Bank of Pakistan. Following the submission of audit report to the regulator the audit per kilogram profit on the sale of commodity and real production cost of the stations is expected to be determined in accordance to the recommendations of the audit firm, sources said.
It is pertinent to mention here that earlier Ogra invited reputable audit firms registered with ICAP and fall in Category A of panel of Auditors maintained by the State Bank of Pakistan having minimum of five years experience of cost audits of energy/ manufacturing concerns,” to conduct emergency audit of CNG stations to ascertain the actual and prudent cost of product sold across the country for vehicular use. Nine parties had participated in the biding process to conduct the audit to examine the profits, return and cost of CNG stations. However, it was awarded to the lowest bidder -Avais Hyder and Nauman Liaquat company.