Updated :
Wednesday October 31 , 2012 4:58:29 PM
The Oil and Gas Regulatory Authority (OGRA) has initiated hearing to decide the new price of the CNG. The owners insist that their interests be protected.
Chairman OGRA Saeed Ahmed has said that the new formula would keep in mind the investment made by CNG Association and its interests as well as the purchasing power of CNG consumers
Yesterday chairman OGRA had said that it would prepare a formula for fixing of CNG price tomorrow which would be presented before the Supreme Court on Thursday.
He stated this yesterday after the open meeting over gas price organized by OGRA. The new formula would consider the investment made by CNG Association and its interests as well as the purchasing power of CNG consumers.
During the meeting the CNG Association had tried to prove that its production cost is too high and the price recently fixed is causing them loss.
Consumers representatives had rebutted this claim of the CNG Association that if if the has was profitable at Rs 48, how it could be unprofitable at Rs 60.
The Transporters Association had said that the CNG stations owners are passing off all the expenses to them and yet give them air instead of CNG gas. They had also accused the CNG station owners of enjoying an unholy alliance with OGRA.
The CNG Association had said that OGRA has no authority to issue notification for increasing price and if the operational cost is not enhanced they would be forced to close the CNG stations.
Chairman OGRA had said that fixing of petroleum and products has been changed to twice a month and the prices would be decided after the Supreme Court's verdict. The price of gas would be fixed next on December 31 and thereafter after every six months, he added.
On this the CNG Association said that its average monthly income is aroiund Rs 250,000 while the various government taxes add up to Rs 850,000 monthly. In addition, it claimed that it cost it Rs 250,000 every year to paint the station while oil marketing companies are paid Rs 3.30 per kilogram and other expenses are also very high after which their cost of production no more remains small.
The Association also claimed that this cost of production has been on the rise since the signing of the memorandum of understanding with the Petroleum Ministry in 2008. In addition, the average monthly sale has declined from 58,000 kilograms to 50,000 kilograms while the old production cost was calculated on the basis of 58,000 kilograms.
Petrol price: LHC seeks govt, Ogra responses
The Lahore High Court (LHC) on Tuesday summoned responses from the federal government and the Oil & Gas Regulatory Authority (Ogra) by Nov 14 on a petition filed against the increase in petroleum prices.
The petitioner Hanif advocate told the court that several petitions on petroleum prices were pending in the LHC and while response had been summoned from the federal government, the court had not received any reply.
Adding to that, the petition said that instead of defining a proper mechanism of price regulation, the government was continuously increasing petroleum prices.
The petroleum price increase by the government on October 8 was illegal and therefore the notification should be declared void, the petitioner demanded.
Earlier on October 9, the increase in petroleum and gas prices was challenged in the Lahore High Court.
A consumers’ rights organisation had challenged the increase by filing a writ petition and had stated that the increase was a fraud on citizens.
The Oil and Gas Regulatory Authority (OGRA) has initiated hearing to decide the new price of the CNG. The owners insist that their interests be protected.
Chairman OGRA Saeed Ahmed has said that the new formula would keep in mind the investment made by CNG Association and its interests as well as the purchasing power of CNG consumers
Yesterday chairman OGRA had said that it would prepare a formula for fixing of CNG price tomorrow which would be presented before the Supreme Court on Thursday.
He stated this yesterday after the open meeting over gas price organized by OGRA. The new formula would consider the investment made by CNG Association and its interests as well as the purchasing power of CNG consumers.
During the meeting the CNG Association had tried to prove that its production cost is too high and the price recently fixed is causing them loss.
Consumers representatives had rebutted this claim of the CNG Association that if if the has was profitable at Rs 48, how it could be unprofitable at Rs 60.
The Transporters Association had said that the CNG stations owners are passing off all the expenses to them and yet give them air instead of CNG gas. They had also accused the CNG station owners of enjoying an unholy alliance with OGRA.
The CNG Association had said that OGRA has no authority to issue notification for increasing price and if the operational cost is not enhanced they would be forced to close the CNG stations.
Chairman OGRA had said that fixing of petroleum and products has been changed to twice a month and the prices would be decided after the Supreme Court's verdict. The price of gas would be fixed next on December 31 and thereafter after every six months, he added.
On this the CNG Association said that its average monthly income is aroiund Rs 250,000 while the various government taxes add up to Rs 850,000 monthly. In addition, it claimed that it cost it Rs 250,000 every year to paint the station while oil marketing companies are paid Rs 3.30 per kilogram and other expenses are also very high after which their cost of production no more remains small.
The Association also claimed that this cost of production has been on the rise since the signing of the memorandum of understanding with the Petroleum Ministry in 2008. In addition, the average monthly sale has declined from 58,000 kilograms to 50,000 kilograms while the old production cost was calculated on the basis of 58,000 kilograms.
Petrol price: LHC seeks govt, Ogra responses
The Lahore High Court (LHC) on Tuesday summoned responses from the federal government and the Oil & Gas Regulatory Authority (Ogra) by Nov 14 on a petition filed against the increase in petroleum prices.
The petitioner Hanif advocate told the court that several petitions on petroleum prices were pending in the LHC and while response had been summoned from the federal government, the court had not received any reply.
Adding to that, the petition said that instead of defining a proper mechanism of price regulation, the government was continuously increasing petroleum prices.
The petroleum price increase by the government on October 8 was illegal and therefore the notification should be declared void, the petitioner demanded.
Earlier on October 9, the increase in petroleum and gas prices was challenged in the Lahore High Court.
A consumers’ rights organisation had challenged the increase by filing a writ petition and had stated that the increase was a fraud on citizens.
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