OWNERS of CNG filling stations are going to shut their stations from 12am on Sunday against, what they called, the flawed price formula of gas, which is inflicting heavy losses on them.
The honourable court has not placed any restriction on closing down CNG stations, said Ghiyas Abdullah Paracha, chairman, Supreme Council of All Pakistan CNG Association (APCNGA).
He said that owners of CNG filling stations could not be forced to sell gas in loss. Therefore, it has been left to respective owners of the stations to do what they feel appropriate to avoid losses, he said.
However, it is learnt that CNG filling stations would be closed down on Sunday, six hour before mandatory weekly closure. There are numerous stations in the provincial metropolis that have already stopped sale of CNG or slowed down retail business on the pretext of technical issues.
Moreover, low pressure of gas has also helped the owners of CNG stations to restrict sale of gas.
Paracha said his association proposed three options to keep the CNG business viable and keep the masses from the impact of high price of the product.
The options have been designed in view of the directives of Supreme Court. He added that OGRA should accept any of the option to fix the prices immediately.
He said that most of the business was run on the basis of 30 per cent profit while those with transaction to the tune of billions could operate on reduced rates, he said, adding that new price mechanism had eroded profit margin of CNG stations.
According to the demand of APCNGA, CNG sector should be charged for gas same as other sectors are being charged, auditors have shown average sale of the CNG filling stations as 74,000 kg which is not more than 51,600 kg.
Acting upon the APCNGA formula will not only streamline CNG prices but bring uniformity among all critical sectors of the economy and provide much needed relief to the masses, he observed.
Uniform taxation and provision of gas on equal rates can help keep prices of CNG affordable across Pakistan, he said. Conspiracies are being hatched to destroy CNG sector which will hurt millions and sink investments of billions, he added.
Following decision of the apex court, Ministry of Petroleum and Natural Resources and OGRA did not reduce any tax and conveniently diverted the entire burden on CNG sector which is unjust, he said.
On the other hand, Paracha said that nowhere in the world the production cost of any business was brought down to zero except Pakistan. CNG sector is paying GIDC up to Rs 300 mmbtu while industrial sector is giving Rs 50 for the same, he said. He said, ?We are being made to pay 500 per cent additional cess which if identical will help reduce gas price by Rs 13 per kg,? he maintained.
Meanwhile, All Pakistan CNG Association demanded of authorities concerned to announce uniform gas price for all CNG stations of the country.
CNG stations to shut indefinitely from tonight - thenews.com.pk