The government and the All Pakistan CNG Association (APCNGA) have agreed to increase CNG prices by 7 percent in a bid to reduce price differential between CNG and petrol. This was decided in a meeting held here on Thursday with Dr Asim Hussain Federal Minister for Petroleum and Natural Resources in the chair and attended by representatives of All Pakistan CNG Association.
At present, the CNG price is equivalent to 48 percent of petrol price and, in case of increase in the CNG price, it would be equal to 55 percent of the petrol price. Earlier, the petroleum ministry had recommended to the Economic Co-ordination Committee (ECC) of the Cabinet to jack up CNG price by 17 percent. Now the Ministry of Petroleum and CNG Association have agreed on taking the gas price for compressed natural gas outlets to 55 percent of petrol price, with a seven percent increase, said Ghiyas Abdullah Paracha, Chairman of Supreme Council of APCNGA.
The summary of reduction in gas curtailment for CNG sector will be sent to ECC in next 15 days, and keeping in view the betterment in supply of gas relief would be announced for the public. Ghiyas told newsmen after the meeting that the decision of new price formula had been welcomed and the hanked Dr Asim. He said that APCNGA is quite sure that Petroleum Minister will play his vital role in providing relief to 40 million people.
The meeting decided that a new gas distribution formula on equal basis will be formulated with the consent of all stakeholders and equal distribution of load management will be initiated. Ghiyas said: "We have postponed the protest and strike call after today''s decision but the meetings in all districts will be held as scheduled in which we will meet the people there and will inform them about the details of the meeting with Petroleum Minister. Paracha said that the government and CNG Association have agreed on a formula for the increase of CNG prices according to which the Federal Cabinet will now approve new prices.
According to the ministry''s recommendations, a 15 percent price increase had been sought for bulk domestic consumers, commercial consumers, cement and power plants of Water and Power Development Authority (Wapda) and Karachi Electric Supply Company (KESC). For the industrial sector including textile industry, captive power plants and feedstock of fertiliser plants, an 18.43 percent increase had been suggested. The ministry has sought a rise of 36.26 percent in gas tariff for independent power plants (IPPs) while for the fertiliser sector it has proposed an increase of 96.06 percent.