Production cost must be included in retail price: APCNGA | Pakistan Today

Production cost must be included in retail price: APCNGA

The All Pakistan CNG Association (APCNGA) has demanded the government to include production cost in the retail price as per international accounting laws.
Ghayas Abdullah Paracha APCNGA Supreme Council Chairman in a statement said the association requested the federal cabinet’s Economic Coordination Committee (ECC) in its meeting on Wednesday to account for all aspects, including operational cost and other expenses of CNG stations while finalising the new pricing formula. He said the urea sector was getting gas cheaper by Rs 44.04, independent power producers cheaper by Rs 23.42 and the rest of the industry was given a discount of Rs 26.42 compared to CNG filling stations.
Paracha said the government was charging Rs 14 as GIDC on every kilogramme of CNG sold in Potohar, Balochistan and Khyber Pakhtunkhwa and Rs 9 in the rest of the country, which should also be taken into account before fixing prices.
He added that the government was getting Rs 64.56 from CNG stations in Region I, including Rs 57.02 as gas price and Rs 7.54 as electricity bill, while Rs 54.52 was being charged for the same in Region II.
Paracha said that the average cost of establishing a CNG filling station was Rs 51.8 million with average sale of 54,868 kg per month which must be considered while fixing prices.
He urged the government to treat CNG stations at par with gas companies to keep the business viable.
He said the Oil and Gas Regulatory Authority (OGRA) should determine CNG prices while keeping all these facts in mind. It will be unjustified if the price of gas and taxation imposed on CNG stations are not brought at par with other sectors consuming natural gas, he added. Law Minister Farooq H Naiksaid the CNG issue will be resolved soon in consultation with all stakeholders.



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