Daily Times

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has termed the sale of compressed natural gas (CNG) in litres as illegal.

OGRA Spokesman Afzal Bajwa told Daily Times on Tuesday that “The imported gas (RLNG) is de-regulated and authority does not regulate its pricing. In Punjab, the CNG sector has opted for using ‘RLNG’ that is why they can convert their measurements and pricing,” elaborating that, “But the natural gas that is produced indigenously is regulated and its price is determined by the authority.” He pointed out that “In Sindh province, the sector is using indigenous gas and the moving on to sale in liters is illegal.” Taking cognizance of CNG Association’s decision to sell CNG in litres in Sindh instead of kilos, the OGRA observed that sale of indigenous CNG in liters is illegal.

The authority has communicated to the All Pakistan CNG Association that the maximum sale price of CNG on 31-08-2015 is Rs 75.82 per kg for Khyber Pakhtunkhwa, Baluchistan and Potohar region (Rawalpindi, Islamabad and Gujar Khan) and Rs 67.50 per kg for Sindh and Punjab and it is legally prevalent for all indigenous gas based CNG stations, the spokesman added. Any CNG Station charging other than the OGRA notified rates is violating law and action shall be taken against violators as per law, he said. The authority has, further observed that the above referred notification had been issued under the relevant law and in pursuance of the decisions of Economic Coordination Committee of the Cabinet (ECC). “Therefore, all the CNG stations are legally obligated to sell (local gas-based) CNG in kilograms and not in liters.”

In this regard, OGRA has also advised the CNG Association to come up with proposals for authority’s consideration as per law and in accordance with policy of the government. Moreover, Consumers are skeptical over the new CNG pricing. They told this scribe that they are worried over the hike in CNG prices according to the new pricing system.

When contacted, the CNG Station Owners Associated of Pakistan Malik Khuda Buksh said, “There is no price hike in CNG prices as far as litre pricing is concerned.” “The CNG litre will be sold at Rs 48.20, if the association decides and there is no issue in its pricing,” he said. He said he was unaware of any development regarding the issue of change in weighing measurement. It is pertinent to mention that over fifty percent of CNG stations have already changed the weighing measurement of CNG from kilogram to litre.