Govt to act against CNG stations resisting price cut

Dawn.com Published October 26, 2012

– File Photo

ISLAMABAD: The Prime Minister’s Advisor for Petroleum and Natural Resources, Dr Asim Hussain, said on Friday that the government would action against those gas station owners who had shut down their filling stations following the Supreme Court’s order to reduce CNG prices.

Many gas stations in Karachi closed down on Friday causing difficulties for the public, while most gas stations reportedly turned away customers on the pretext of having developed technical faults.

Despite it being a public holiday today, public transport remained sparse on the roads and people were forced to commute on rooftops of buses.

Speaking to the media here today, Dr Hussain said that a list was being compiled of those stations which were closed after CNG prices were slashed by up to Rs 30.90 Thursday, adding that that legal action would be taken against them.

Welcoming the apex court’s orders, Hussain urged all provincial governments to ensure immediate implementation of the court’s directions.

Moreover, Hussain added that the licenses would be cancelled of those stations which would remain closed despite clear direction of the SC.

Meanwhile, the Oil and Gas Regulatory Authority (Ogra) has threatened legal action against those CNG pumps where the price reduction was not being implemented.

The regulatory body has already dispatched its teams into different areas to monitor and control CNG prices according to the recent changes, it was learnt.

CNG Dealers Association chairman Abdul Sami Khan said some members had asked him how they could run their business in loss, but the association instructed them to reduce the price and keep their stations open.

Contrary to actual events, CNG Station Owners Association chairman Malik Khuda Bux claimed that all its members had reduced the price and their pumps were open across the country. Some pumps might have been closed because of low gas pressure, but all other pumps were operating normally, he added.

He said the price cut decision was implemented from midnight and CNG would be available at the reduced rate by Friday morning.

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Pagall

Oct 26, 2012 08:12am

CNG licences should be canceled. So that they understand and keep in mind for the rest of life .. not to challenge the SC order

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Rizwan

Oct 26, 2012 12:45pm

'how could we run the business in loss?' well thats pretty simple to figure out. how were you running the business when prices would go up unjustifiably?

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Nadeem

Oct 26, 2012 07:11am

It shows how corrupt and cruel is our government.Closing down the CNG Stations also reflect the national character of ours as a nation.Kudos to CJ.

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Raza

Oct 26, 2012 05:00pm

Perhaps we also need to consider the other side of coin of how the govt keeps switching their policies on regulating the CNG sector. Setting prices without consulting them, declaring CNG holidays and so on. All this definitely has to affect their profits and they are all here to make a profit, its not a public good being delivered by the GoP.

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Cyrus Howell

Oct 27, 2012 08:16pm

Good point.

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Cyrus Howell

Oct 27, 2012 08:08pm

Many people are close to a desperate situation in this economy. I doubt the station owners see that much of a profit. They can't operate in the red for long. Better to shut down. The Eid holiday was not the time to close though. That is not really fair. The employees will be the ones to take pay cuts to keep their jobs.

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Sajid

Oct 26, 2012 03:16pm

Our govt is to be blamed more than cng pumps owners or association for that unusual price hike in the past.

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the whole drama.

Oct 26, 2012 03:49pm

Selling at a lower price infact helps the station owners, and the time when rates were about 36/kg, sales were the highest in kg/day were at peak at that time, because more people turned towards CNG vehicles as the car mileage cost was highly attractive - But now, It is a very wrong perception given to the public that CNG station owners are earning huge profits, yes there was a time before 2008 elections that it was profitable, when everyone was after setting up a new station but things are quite different now, governemnt has totally lied on the issue that station owners are earning 11 rupees/kg profit - Government has earned the highest profits from the CNG business till now, and yet there are a gazillion taxes before the final price is formulated as per kg, APCNG association have been in battle with the govt since PPP gang came into power, with three days of cng loadshedding per week, Gas bills upto 70%, electricity bills upto 20 %, with additional generator costs and additional maintenance cost and staff salaries at 10,000 per worker, CNG stations will run on high loss if they operate at the current formulation which OGRA has produced. The govt, has fooled the public and courts by putting the limelight on Station owners, basically they want LPG in the country as most politicians have LPG quota allocations in their favour, but it doesnt realize, CNG has become a necessity of the public because govt promoted CNG as "nature friendly" in their campaign years ago and about 70 % of transportation turned towards gas kits and CNG cylinders as they invested in their cars/rickshaws/vans/even busses, and if CNG is not made available to the public, govt does not have the funding and the foreign reserves to cope with the petrol-need of the public and the now-so-grown-car-traffic and Petroleum ministry would go down in months.

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muzammil ullah khan

Oct 26, 2012 04:39pm

I hope this court order does not meet the same fate that was met when the sugar price was fixed at Rs 40 per kilo by the supreme court and some justices had taken suo moto notice of the cost of vegetables in the early days of the newly independent judiciary. To my uneducated mind a better decision would have been to appoint an "independent" team of experts to analyze the realistic cost of the CNG in a fixed time of say 15 days and then implement their recommendations as the court order.

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Imtiaz Ahmad Waryah

Oct 26, 2012 09:22pm

????? ????? ??? ????? ????? ?????? ???? ???? ????? ??? ????? ????? ?? ?????? ?? ????? ???? ???? ??? ??? ?? ?? ?? ???? ???? ??? ???? ?? ????? ????? ???? ???? ??? ???? ?? ?? ?? ???? ??????? ?? ?? ??? ?? ?? ???? ?? ???? ?? ????? ????? ????? ?? ????? ?? ?? ??? ?? ?????? ????? ??????????? ???? ?? ??? ?? ??? ??????? ??? ???? ?? ??? ??? ??? ??????? ?? ??? ???? ??? ???? ?? ?????? ???? ?????? ?? ??? ?? ?????? ?? ???? ????? ???? ?? ???????? ???? ?? ??? ??? ?? ?? ??? ???? ????? ???? ?????? ???? ???? ???? ?? ??? ??? ??? ???? ?????? ?? ??? ?? ?????? ?? ??? ?????? ???? ????? ???? ?? ??? ?? ???? ?? ??? ?????? ?? ????? ?? ????? ???????? ??? ?? ?? ????? ??? ?? ??? ?????? ???? ???? ??? ?? ????? ?? ??? ?? ?????? ?? ??? ??? ?? ?????? ?? ???? ????? ??? ?? ?? ?? ??????? ???? ?? ???? ?????? ????? ??? ??? ??? ''??? ??? ???????? ????? ?????? ???? ?????''??? ?? ??? ?? ????? ??? ??? ???? ????? ?? ?? ???? ??? ?? ?? ??? ???? ?? ????? ???? ?? ??? ??? ?? ??? ????? ?? ???? ???? ???? ???:''??? ?? ?? ?? ?? ?? ??? ?? ?????? ???'' ??? ?? ??? ?? ???:''??? ????? ???? ??? ???? ???? ??''??? ??? ???? ????? ???? ????????? ?????? ??? ???? ????? ????? ?????? ????? ???? ????? ?? ???? ?? ?????? ?? ??? ?? ?????? ?? ??? ?? ???? ????? ?????? ?? ????? ???? ?????? ?? ??? ???? ?? ??? ????? ???? ??? ????? ??? ??? ??? ??????? ??? ?????? ?? ???? ?? ?? ??? ??? ????? ?????? ???? ???? ??? ?? ?? ??? ??? ???? ????? ???? ??? ???? ?? ???? ?? ???? ?? ???? ????? ??? ?????????? ??? ??? ????? ??? ??? ??? ????? ????? ?? ???? ?? ??????? ??????? ??? ?? ??? ?? ???? ?? ????? ?? ???? ???? ????? ??? ????? ?? ?? ??? ?? ?????? ?? ????? ????? ?? ????? ?? ??? ?????? ?? ???? ?? ????? ?? ?? ?????? ????? ???? ??? ??? ?????? ?????? ????? ??? ???????? ?? ??? ?? ?????? ?? ?? ???? ?? ???? ??? ?? ?? ??????? ?? ???? ???????? ???? ?? ????? ?? ????? ?? ??? ???????? ?????

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Ahsen

Oct 26, 2012 05:10pm

From this we can see , and blame no one else but the nation , we are people are corrupt , how can the country develop ?

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Farooq Ullah Khan

Oct 26, 2012 12:18pm

Lets have actual cost working from the CNG station owner's side as well. There is no harm in listening to their argument. With this thing we ( general public ) as well as Supreme Court would be very clear about intentions and character of CNG station owners.

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Husain

Oct 26, 2012 10:27am

Here at Hyderabad, a CNG station in Qasimabad has started selling CNG at Rs 54 per Kg since 11:00 am Friday 26th Oct.

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