CNG prices once again take a hike
Tuesday, February 28th, 2012 5:44:37 by Wajahat Javed
CNG prices once again take a hike
Monday, February 27, 2012: The Government of Pakistan has once against increase the price of compressed natural gas (CNG). As per the latest updates, per kg price of CNG has been increased by Rs1.06 in Islamabad. The price of CNG
now stands at Rs75.35 per kg.
The basic motive behind the government’s decision of increasing the CNG price is to generate funds for certain projects pending projects which need finances to be completed. The additional revenue from the price hike will be used
for gas import projects including Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects.
Oil and Gas Regulatory Authority (Ogra) issued a notice stating that the government has imposed a general sales tax on Gas Infrastructure Development Cess charged on CNG sale.
The rise in prices is not the same throughout the country. The country is divided into two zones (Zone 1 and Zone 2). The Zone 1 – which include regions of Potohar Region (Rawalpindi, Islamabad and Gujarkhan), Khyber-Pakhtunkhwa
(K-P), and Balochistan – have seen price increase of Rs1.06 to Rs75.35 per kg. However, Zone 2 – which includes areas of Sindh and central Punjab – has witnessed an increase of Rs0.54 per kg to Rs70.15 per kg.
The increase in CNG price is only the beginning and Petroleum products are next in line. It is anticipated that prices of Petroleum products will surge up to Rs8.5 per litre from beginning of March, as neither the finance ministry
nor provinces are ready to decrease their revenue in a bid to keep prices unchanged.
The Finance Ministry had already called for transferring the burden on customers, as sharing the burden (decreasing of tax to stabilize prices) would mean that it will lose would lose billions of rupees in revenue. Finance Ministry
has claimed to receive Rs31 billion on account of tax on petroleum products during the first six months of current fiscal year (July – December 2011) as opposed to their target of Rs64 billion.
Short URL: https://www.newspakistan.pk/?p=14014
Posted by Wajahat Javed
on Feb 28 2012. Filed under Business, Pakistan.
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