Govt likely to clip CNG station owners' wings

ISLAMABAD - The government is likely to clip Compressed Natural Gas (CNG) station owners' wings by allowing Oil and Gas Regulatory Authority (OGRA) to fix final price of the natural gas for the end consumers. Petroleum Ministry sources told TheNation that the Economic Coordination Committee of the Cabinet, which will meet in Lahore today (Tuesday), would ask OGRA to play its role in CNG price determination for the commercial users. So far under a deregulation policy, OGRA, the national petroleum regulatory body, prescribes a price for the Sui Northern Gas Pipelines Limited and Sui Southern Gas Pipelines Limited, companies engaged in gas transmission and distribution business.    The CNG station owners, then, determine price for the users by adding their cost, which is over and above the distribution companies' price. The OGRA does not have a role at this point. According to a study, the CNG station owners are earning more than 100 per cent profit by selling gas to the users at exorbitant rates. The gas distribution companies are providing CNG at Rs 22 kg and most of the CNG stations are selling at over Rs 48 per kg. Some of the CNG stations in Islamabad are selling gas at over Rs 44 per kg and most of the stations are fleecing the customers by selling the commodity at over Rs 48 per kg. A customer finds two rates even on one company's (Shell) stations. The sources said the government would constitute a committee that would determine a pattern of fixing the price for the end consumers. According to the proposal, OGRA will review the gas prices after every six months. "If OGRA can determine the price of petrol and diesel for the end consumers, why not for CNG", said the sources. The ECC would also take up the issue of sugar price situation in the country. According to the market sources, the sweetness was gradually becoming dearer before the holy month of Ramadan. They expect a crisis like situation if the government remains unmoved. The ECC would take into account the current economic situation in the country. The economic managers would give a detailed presentation on current state of economic affairs to the political leadership. The power sector's financial issues will also come under discussion and ECC would review the possible solutions to the problems.

ePaper - Nawaiwaqt