ISLAMABAD: CNG association have rejected Oil and Gas Regulation Authority (OGRA) new CNG pricing formula adding that the new proposal would hand them losses rather than any benefit.
According to sources, CNG association of the all the provinces have amalgamated on the matter and have stated that they do not wish to accept the new pricing formula.
“When the government is not lowering their taxes then why are we bound to accept the new prices since the taxes would remain intact and would lead us to withstand the losses,” stated a spokesman of the CNG association.
Earlier, OGRA had devised a new formula in order to calculate the price for CNG, the proposal of the calculation had been sent over to the Petroleum Ministry, sources had stated.
According to an OGRA spokesman, the new formula had been devised in accordance with Supreme Court’s directives.
As per the new calculations, the price for CNG in Region 1 would amount to Rs 72.20 per kilogram while the price in Region 2 would be kept at Rs 63.76 per kilogram.
Region 1 comprises of Potohar, Balochistan and Khyber Pakhtunkhwa while Region 2 includes the provinces of Sindh and Balochistan.
Story first published: 29th November 2012