CNG sector seeks withdrawal of IDC

The CNG industry has requested the government to withdraw Infrastructure Development Cess (IDC) on CNG, saying that the industry is already paying higher than other consumers. National Assembly recently adopted the resolution to withdraw recent hike in oil prices.
"We also request the parliamentarians to take up the issue of increase in CNG prices on account of imposition of Cess that should be immediately withdrawn," Abdullah Ghyas Paracha, Chairman All Pakistan CNG Association (APCNGA), told Business Recorder.
He said that increase in CNG price had badly hit the commuters as 90 percent public transport of the country was using CNG. At present, CNG industry is paying Rs 699.20 per mmbtu in region-1 of Sindh and Punjab, and Rs 736 per mmbtu in region-2 consisting of Khyber Pakhtunkhwa, Balochistan and parts of Punjab that is higher price compared to the other consumers.
He said commercial sector pays Rs 600.19 per mmbtu, industry including captive power plants Rs 507.86 per mmbtu, power sector (Wapda/KESC) and independent power plants (IPPs) Rs 507.86 per mmbtu, cement industry Rs 694.22 per mmbtu, fertiliser old plants Rs 313.27 per mmbtu and fertilizer new plants Rs 60.67 per mmbtu. Bulk domestic consumers pay Rs 496.21 per mmbtu.
"Therefore, the allegations of higher profits in CNG sector are unjustified and increase in CNG prices by imposing cess should be immediately withdrawn to provide relief to the public," Paracha said. Official sources said that fertiliser and industrial sectors had created problems to manage gas during winter season.
Domestic consumers faced gas load shedding as government continued gas supply to industry that was supposed to face suspension of gas for three months according to agreements signed with Sui Northern Gas Pipelines (SNGPL). Economic Co-ordination Committee (ECC) had approved a load management plan in November 2011 to supply gas to fertiliser plants on rotational basis that was not implemented and even gas supply continued to fertiliser sector till end of December 2011.
An official of Petroleum Ministry said that gas was supplied to industrial sector in violation of gas supply agreements as industry did not get regular supply of gas in nine months. "Now government plans to revise gas supply agreements with industry to supply gas on available basis," Secretary, Petroleum, Ijaz Chaudhry recently told National Assembly Standing Committee on Petroleum and Natural Resources.