ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) has issued notification of new prices of Compressed Natural Gas (CNG) as per the judgment of the apex court, but ostensibly on last day of the deadline given by the apex court.

The Supreme Court on 10th December had declared the collection of additional 9 per cent GST in CNG price as null and void and ordered the Ogra to issue a notification of new prices of CNG within seven days. On finding apex court decision pertaining to suspension of a levy on CNG, the Federal Board of Revenue (FBR) had submitted a review petition with the apex court. However, the honourable court has so far not granted stay order to the central revenue generation body (FBR) that was found worried to some extent over the decision of suspension of 9 percent GST in CNG price by the SC.  According to Ogra’s notification pertaining to new prices of cheap fuel (CNG) for above three million vehicles, new price of CNG for Region-I is Rs74.25/kg while Rs66.14/kg for Region-II. New prices have been notified as per the judgment of Supreme Court.

Interestingly, Ogra has issued notification of new prices of CNG on the day when the given limit of SC for notification was set to expiry. So far it had taken advantage of given limit of the SC pertain to issue the notification of CNG prices.  The apex court in its judgment had ordered the authority (Nepra) to issue notification of new prices of CNG within seven days.   Well-informed sources earlier told that high-ups at the Federal Board of Revenue have verbally asked the top guns of the regulatory authority not to issue a new notification pertaining to decrease in CNG prices. And, Ogra while succumbing to the pressure of Federal Board of Revenue had not decrease the prices of CNG prior to its expiry date.

  They also told that prices of CNG would not witness up to Rs 1.23/kg decrease from if the Supreme Court grants stay order to Federal Board of Revenue (FBR).

Ogra has worked out new prices of CNG and will issue a notification pertain to decrease in the prices of CNG in the light of SC decision if the Supreme Court does not grant stay order to the Federal Board of Revenue, they added.

Currently, the natural gas supply to CNG filling stations is suspended in Punjab following a decision of Sui Northern gas pipelines. Reportedly, CNG filling stations would not find gas during January and February while in March and April they would find gas supply for one day a week. However, the fate of gas supply restoration during the month of December for the CNG filling stations is depend on the demand of gas by domestic and industrial consumers, some power plants, tandoors only.