CNG: the blame game

Things could not get messier and more heated up close to the judgment day – December 5, 2012. So much for the plans and across the board deliberations, the country’s biggest challenge, energy crisis, seems to have taken a big receding leap with the CNG quandary taking the centre stage.
From Supreme Court’s spontaneous decision and CNG industry’s hullabaloo, to ministry’s stance and Ogra’s diplomacy, the 37-day act so far has been no less than a thriller drawing the wrath of the dealers and the consumers.
For a short précis, think back to the times when the cards were all stacked up in favour of the dealers; they were flippantly minting money amid the apparent gas shortage in the country until the apex court pulled the rug out from under the industry with a massive Rs31 per kg price cut. Meanwhile, the ministry further intensified its valid, yet an extremely late, stance of gradual phasing out of the CNG sector.
Who is to blame? Clearly, the tension between the ministry of petroleum and the CNG industry has spiralled. CNG and Ogra are at odds over the pricing mechanism. The power tussle between the ministry and Ogra has not been elusive. And now after the Supreme Court’s decision, one clear target is the CNG sector.
But those who understand the vulnerability of the situation should not get all excited about some hope for the energy crisis in the forthcoming winters as it is more of a messy blame game, which has its roots in the political and personal interest, than a consensual attempt to rid energy shackles.
Calling it an alleged conspiracy and its abhorrence with Gas Infrastructure Development Cess (GIDC), the CNG sector blames the government for not compromising on taxes, while its disagreement with Ogra over pricing has its foundation in the operating costs.
Though the regulator is adamant that the proposed pricing formula is balanced based on rationalisation of costs, both the ministry and the CNG sector, though at odds with each other, have qualms with Ogra’s performance as a mediator.
The government and the Ministry of Petroleum have finally set out on the route of gradual phasing out of CNG sector due to scarcity of the non-renewable hydrocarbon in the country. While the imposition of another tax on consumption is on the cards, the Supreme Court has meddled in, rejecting the linking of CNG with petrol on the grounds that unlike petrol, the entire CNG is produced domestically.
What has it all resulted in? Besides the comedy of errors on part of those at the helm, the recent quagmire has caused misery of the masses. Whether the state of frenzy is the result of an actual emergency or has vested interests, the situation has reached a point where the ways out lies in a nationalist approach more than anything.
The solution to long queues at filling stations and the echoing of substandard CNG cylinders, along with the bombs and drones, lies in a collective attempt. One thing is for sure: vehicles will still be operative and people will find a way to adapt if CNG is phased out. It’s high time for a sacrifice, so Get Set Walk!