-File Photo

ISLAMABAD: The All Pakistan CNG Association (APCNGA) on Wednesday proposed a new pricing formula to keep CNG business viable, bring standardisation and rationalise prices of the product.

Three options have been given to the Oil and Gas Regulatory Authority (OGRA) which have been designed in view of directives of the Supreme Court, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

In a statement issued on Wednesday, he said the Ogra can accept any of the option to fix prices immediately.

Majority of business are run on the basis of 30 per cent profit while those with transaction to the tune of billions can operate of reduced rates, he said.

Paracha said, “We will make our formula part of the Ogra’s public hearing scheduled on November 23 at Lahore.”

He said the Ogra is free to impose prices recommended by the auditors provided our four major concerns are addressed.

Giving details, he said that the CNG sector should be provided gas on rates sold to other sectors. Auditors have shown average sale of the CNG filling stations as 74,000 kg which is in fact not more than 51.600 kg, he said, adding that profit margin should be rationalised and repressive taxation should be abolished forthwith.

He said the options forwarded by the APCNGA are not new but already being practiced in other sectors.

He said fertilizer sector was getting gas for Rs 116.27 per MMTBU and paying Rs 100 as Gas Infrastructure Development Cess (GIDC) which if introduced in CNG sector will bring prices down to Rs 48.15 in region-1 and Rs 46.80 in region-2.

Regarding second option, he said, industrial sector is paying Rs 460 per MMBTU and Rs 50 as GIDC which if imposed for CNG sector will bring prices to Rs 69.79 in region-1 and Rs 66.63 in region-2.

Paracha said the power producers in the private sector are getting gas for Rs 460 per MMBTU and paying Rs 100 as GIDC. Uniform gas rates and taxation will result in CNG price in region-1 at Rs 43.47 and Rs 70 in region-2.

He said since there is nothing new in this formula and similar rates of gas and same taxation is already bring practiced in other sectors, therefore, there is no reason for any objection.

Accepting the APCNGA formula will streamline CNG prices, bring uniformity among all sectors of economy and provide much needed relief to masses, he added.