LAHORE - The Ogra Chairman Saeed Ahmad Khan has said that issue of CNG pricing will be solved by December 5.

Talking to media after the Ogra’s public hearing for determining of CNG price here on Friday, Saeed said that CNG association in its presentation requested that gas utilities should provide gas to CNG stations on the same rates as was provided to industry, urea and power sector.

He, however, mentioned that CNG sector was unable to provide them the exact figure of their operating cost and they were not ready to reduce their profit ratio.

To a question about the demand of Sui Northern Gas Pipe Lines Limited (SNGPL), Saeed said that Ogra had fixed UFG benchmark 4.5 percent but the SNGPL is facing 10 percent UFG losses and if we increase the benchmark the gas theft will also be increased. He said that government is bound to fix the price on the recommendations of Ogra with in 40 days.

All Pakistan CNG Association Chairman Ghyas Abdullah Paracha said that any chartered accountant firm of international repute should be appointed to determine the price of CNG.

He said that they did not want to increase the price of CNG but they wanted the price which was acceptable to everyone. He gave three options to Ogra on which they can determine the prices. According to his formula, if gas will be provided on the rate on which it being given to fertilizer sector then the price of CNG will be Rs46.26 for the region 1 and Rs44.99 for the region 2, if the gas will be provided on the rate of power sector then rate of CNG will be Rs72.4 for the region 1 and Rs 68.9 for the region 2 and if the gas will be provided on the rate as it was provided to industry sector the price will be Rs68.80 for region 1 and Rs65.63 for region 2. Paracha appealed to the Ogra that they will announce CNG prices as soon as possible because it was unable for the CNG owners to sell the CNG on loss.