ISLAMABAD – Bowing to the CNG association's pressure, petroleum ministry Wednesday decreased the gas infrastructure development cess (GIDC) thereby bringing a slight reduction in the CNG price.

The ministry has decreased GIDC by 10 percent, reducing the commodity price by 72 paisa. As per a notification from Ogra (oil and gas regulatory authority), the CNG prices are now Rs73.58/kg at 1040BTU for Region-I (KPK, Balochistan and Potohar (Rawalpindi, Islamabad & Gujjarkhan), while Rs69.25/kg at 950BTU for Region-II (Sindh and Punjab (excluding Potohar region).

"Downward adjustment in CNG consumer price has been necessitated owing to decrease in GDIC by the federal government. The prices will stay in vogue till such time any further notification is issued", the notification says. As per the new notification of Ogra, 72-paisa decrease has been made in the price of per kg CNG for Khyber Pakhtunkhwa, Potohar and Balochistan region. However, for Punjab and Sindh region the price has been decreased by 38-paisa/kg.

In this way, imposed GDIC of Rs4.25/kg has been decreased to Rs3.55/kg for Region-I while GDIC of Region has also witnessed a decline in a way that it has been reduced to Rs1.82/kg from Rs2.18/kg in Region-II. Succumbing to the immense pressure of CNG association, the ministry has reduced the GIDC two times in last five days. The ministry on Dec 30,2011 decided to give a decrease of 40 percent right after one hour of issuance of the notification pertaining the imposition of GDIC on CNG. At present, the ratio of imposed GDIC on CNG has been left to 50 percent of that originally notified.