THURSDAY DECEMBER 29: Ogra recommends 46 percent increase in CNG price

ISLAMABAD: The Oil and Gas Regulatory Authority on the directives of the petroleum ministry has recommended 46 percent increase in the price of CNG, effective January 1, 2012. According to Ogra official, the CNG price for consumers of Potohar region and Balochistan and Khyber Pakhtunkhawa would be increased by Rs 30.89 per kg, while for Sindh and other parts of Punjab by Rs 24.58 per kg.
Since, the CNG is 53 percent cheaper than the present petrol price ie Rs 89.87 per litre, therefore, CNG price is being increased to deal with serious gas shortage, the official added. The government plans to keep CNG price at 30 percent of the petrol price, he added. If the authority implements the directives of the petroleum ministry, CNG in Potohar, Balochistan and KP would be available at Rs 97.31 per kg, while in Sindh and parts of Punjab it would be Rs 87.69 per kg.
The new gas price for CNG sector would be Rs 886.53 per mmbtu. The authority has also included the Gas Development Infrastructure Surcharge in the new proposed CNG prices. According to sources, if the government implements the Ogra recommendations the country would be forced to spend $5.75 billion additional money on the import of petroleum products, which at present is around $11billion. The Gas Infrastructure Development Surcharge on CNG would increase the prices of the product in zone-1 by Rs 141 per mmbtu. The zone-1 consists of KP, Potohar and Balochistan regions.