CNG price should be increased: audit firm
ISLAMABAD: The consumers of compressed natural gas (CNG) may soon start paying enhanced prices for the fuel if the findings of independent auditors are found to be correct by the Supreme Court and the Oil and Gas Regulatory Authority (Ogra).
Sources told Dawn on Thursday that the independent audit firm appointed by Ogra to analyse accounts of 11 CNG dispensing stations and propose a prudent price had proposed an increase of about Rs28 per kg against Rs32 per kg reduction since October 25.
The sources said the audit firm — Owais-Hyder-Noman-Liaqat — had submitted its report to the Ogra after completing the audit of the 11 CNG stations, two each in the four provinces, two belonging to the oil marketing companies and one in Islamabad.
Based on the accounts and documents provided by the CNG stations, the auditor has assessed compression cost at Rs10 per kg and operating cost at 13.5 per kg as prudent.
The firm has also proposed a profit margin of Rs4.5 per kg to the CNG operators.
As such, the auditor has suggested an increase of Rs28 per kg in the prices of CNG rates.
Separately, a technical team of Ogra is carrying out a costing exercise that will be compared with the auditor’s assessment before submission to the Supreme Court on November 19.
Currently, the Ogra has fixed a price of Rs61.64 per kg for Potohar, Khyber Pakhtunkhwa and Balochistan and Rs54.16 per kg for Sindh and Punjab as CNG sale price following suspension of a 2008 agreement with CNG industry by the government during the hearing of the case by the apex court on October 25.
Meanwhile, the All Pakistan CNG Association has said that uniform taxation and provision of gas on same rates across the country can help keep prices at affordable levels.
In a statement, the association said the government’s efforts “to destroy the CNG sector would hurt millions and sink investments worth billions of rupees”.