ISLAMABAD: The Supreme Court has ordered to maintain the current price of CNG i.e Rs.54.16 per kg until the formulation of new policy from the government, reported Aaj news on Monday.
A three members bench was hearing the case regarding the pricing of CNG across the country. The Supreme Court said that all respondents in the case should sit together and come up with a new formula for pricing the CNG and adjourned the hearing till December 05, 2012.
Earlier, OGRA has submitted an amended price summary of CNG in Supreme Court.
As per the pricing details, The Oil and Gas Regulatory Authority (Ogra) proposed a hike in CNG prices of up to Rs13 per kilogramme (kg) to keep CNG stations operating in the country.
Ogra recommended the price increase of up to Rs13 per kg (i.e Rs. 74.16) for Region-1 – comprising Khyber-Pakhtunkhwa, Balochistan and the Potohar Region (Rawalpindi, Islamabad and Gujar Khan) and Rs11.56 per kg (i.e Rs 65.72) increase in Region-2 – Sindh and Punjab (excluding Potohar Region) to let CNG stations remain operational.
However, the pricing plan of CNG association completely differs from the OGRA. Chairman OGRA Saeed Ahmed presented the report in the apex court during the hearing of CNG price case. He informed the bench that, station owners want to sell the gas at Rs.95.
Earlier, CNG Association has proposed the price of Rs. 83.74 but ORGA has rejected the proposal.
In its orders issued on October 25, the Supreme Court directed CNG prices to be cut after declaring the mechanism of basing CNG prices on the price of petrol as illegal.
Ogra subsequently placed a price cut of Rs30 per kg, ending a memorandum of understanding between the government and the CNG Association on a formula for the operating cost of CNG stations. Subsequently many stations shut down due to the lower prices, saying that they were not even able to pay gas utility bills.