20:24
Unknown
ISLAMABAD: The Competition Commission of Pakistan (CCP) is reviewing the actions of CNG association to find out if they are anti-competitive or violated the competition laws.
The closure of compressed natural gas (CNG) stations every now and then in days other than those when gas load shedding occurs, is one of the factors that invited the commission to look into the matter, and see if those actions could invoke CCP’s provisions.
Official sources in the finance ministry said, “the CCP is reviewing the role of CNG association and that if its actions warrant a full-fledge inquiry.”
“The CNG crisis is a complex issue and the CCP is analysing minute details before moving ahead,” added the sources.
The government is so far unmoved for establishing its writ in the aftermath of the Supreme Court’s directive to reduce the CNG price by Rs31 per kg, they said.
The price fixation in case of natural resources such as oil and gas falls under the jurisdiction of Oil and Gas Regulatory Authority (OGRA) and the role of the regulator in determining price could not be questioned, they added.
The CNG association argued that uniform taxation and provision of gas on equal rates could help in making prices of CNG affordable across Pakistan.
The lingering CNG crisis has made lives of its users miserable as ruling elites want to make this sector uncompetitive in the wake of gas shortage. Total investment in the CNG sector stood at around Rs80 billion and a large numbers of vehicles have been converted on CNG.
There are different aspects of whole crisis that needs to be reviewed before reaching at final conclusion.
“Conspiracies are being hatched to destroy CNG sector, which will hurt millions of consumers and drain on billions of rupees investments,” said the association.
CNG was introduced in 1992 as an alternative fuel for automobiles to reduce the dependency on expensive imported fuel and protect the environment. During the past few years, this sector witnessed growth on account of the price differential between CNG and petrol. A large number of CNG stations were opened to meet the growing demand. There are 3,331 CNG stations operating in the country, according to an estimate.
In addition, the balanced recoverable natural gas reserves have been estimated at 24.001 trillion cubic feet, while average production of natural gas during July-March 2011-12 stood at 4236.06 million cubic feet per day (mmcfd) as against 4050.64 mmcfd during the corresponding period of last year, showing an increase of 4.57 percent.
The closure of compressed natural gas (CNG) stations every now and then in days other than those when gas load shedding occurs, is one of the factors that invited the commission to look into the matter, and see if those actions could invoke CCP’s provisions.
Official sources in the finance ministry said, “the CCP is reviewing the role of CNG association and that if its actions warrant a full-fledge inquiry.”
“The CNG crisis is a complex issue and the CCP is analysing minute details before moving ahead,” added the sources.
The government is so far unmoved for establishing its writ in the aftermath of the Supreme Court’s directive to reduce the CNG price by Rs31 per kg, they said.
The price fixation in case of natural resources such as oil and gas falls under the jurisdiction of Oil and Gas Regulatory Authority (OGRA) and the role of the regulator in determining price could not be questioned, they added.
The CNG association argued that uniform taxation and provision of gas on equal rates could help in making prices of CNG affordable across Pakistan.
The lingering CNG crisis has made lives of its users miserable as ruling elites want to make this sector uncompetitive in the wake of gas shortage. Total investment in the CNG sector stood at around Rs80 billion and a large numbers of vehicles have been converted on CNG.
There are different aspects of whole crisis that needs to be reviewed before reaching at final conclusion.
“Conspiracies are being hatched to destroy CNG sector, which will hurt millions of consumers and drain on billions of rupees investments,” said the association.
CNG was introduced in 1992 as an alternative fuel for automobiles to reduce the dependency on expensive imported fuel and protect the environment. During the past few years, this sector witnessed growth on account of the price differential between CNG and petrol. A large number of CNG stations were opened to meet the growing demand. There are 3,331 CNG stations operating in the country, according to an estimate.
In addition, the balanced recoverable natural gas reserves have been estimated at 24.001 trillion cubic feet, while average production of natural gas during July-March 2011-12 stood at 4236.06 million cubic feet per day (mmcfd) as against 4050.64 mmcfd during the corresponding period of last year, showing an increase of 4.57 percent.
Posted in: Business news
0 comments:
Post a Comment