Govt to impose equitable tax on CNG: Dr Asim
Advisor to the Prime Minister on Petroleum and Natural Resources Dr.Asim Hussain has said that equitable tax would be imposed on Compressed Natural Gas (CNG) in a bid to make it more equitable with Petrol to gradually phase out CNG.
Dr Asim Hussain expressed these view during the meeting of National Assembly Standing Committee on Petroleum and Natural Resources that met with Engineer Tariq Khattak in the chair here on Wednesday.
During the meeting legislative body expressed its concerns over closure of CNG stations and prevailing disagreement over price mechanism between Oil and Gas Regulatory Authority (OGRA) and Compressed Natural Gas (CNG) association.
Legislators were of the view that OGRA and CNG association were stiff over their stances while common man has been forced to stay in long queues for hours to gas fuel for the vehicles.
Dr.Asim Hussain informed the committee that actual CNG gas price is Rs. 35.19 and CNG stations were charging Rs 20.80 merely in operational cost. Gas Infrastructure Development Surcharge (GIDC) is Rs 13 and General Sales Tax (GST) on CNG is Rs 12.10
“The government is committed to gradually phase out CNG from the country as we donot have sufficient gas reserves in the country,” the advisor said, adding that the government is devising a policy for said purpose.
He also criticized the role of Oil and Gas Regulatory Authority as regulator and said that being a regulatory OGRA has been failed to deliver.
He added that government has increased the gas price to $6 which has enhanced the exploration work and currently forty rigs are operational in the country. Advisor said that thirty thousand barrel oil from KPK would be added into the national system till March 2013.
Legislators said that “first of all we should see that either we have sufficient gas reserves in the country to burn in the vehicles at cheap rates or not,” We are wasting gold at cheap rates while other industries are suffering due to it,”.
Lawmaker Rana Afzal Hussain remarked that CNG association has become a cartel and they looted the innocent people of the country and minted million of rupees from con- sumers.
He said that assurance of hundred percent profit over business is beyond understanding, no one can under stand that CNG mafia is being facilitated.
Standing committee handed over this issue to the subcommittee working under the chairmanship of Jamshed Dasti and directed to submit its report immediately.
Standing committee largely resented the explosions of CNG cylinders in the vehicles and said that performance of explosive department is nil.
Dr. Asim Hussain said that Explosive department is under the control of ministry of Industries where they get bribes and after filling forms give laboratory certificates. He said that ministry of petroleum and natural resources have initiated legislation over to bring it under the control of the ministry. Standing committee decided to hold a separate meeting over it.
Secretary Petroleum Dr. Waqar Masood said that flare gas policy is at the final stage of its preparation and its draft has been sent to all stakeholders for their positive input. He said that this policy has been discussed with the gas companies and they are satisfied over this policy.