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Compressed Natural Gas crises discussed by Federation of Pakistan Chambers of Commerce and Industry’s body

Islamabad, November 15, 2012 (PPI-OT): Today a Meeting of FPCCI Standing Committee on CNG was held at the FPCCI, Head Office, Karachi, which was jointly chaired by Mr. Suleman H. Sulemanjee, Chairman FPCCI, Standing Committee on CNG and Mr. Samir Gulzar EC Member FPCCI. The meeting discussed the issues on the prevailing CNG Crisis.

The participants were made aware of the fact that presently CNG industry is going through huge losses as it is operating at a loss of Rs.15 to Rs.17 Per Kg. OGRA has allowed a selling price of Rs.54.16, whereas only the Gas Bill of SSGC inclusive of all taxes comes to Rs.49.18 per Kg excluding other expenses like Electricity Bill, Diesel, Spare parts, Labor, Repair and Maintenance, annual Govt Fees, Lubricants, and other expenses, if accounted for these cost of the CNG Station would come to around Rs.70.15 per Kg. Against the Cost of Rs.70.15 per Kg, CNG stations are selling at Rs.54.16 per Kg bearing huge financial losses that would result in Bankruptcy of the CNG dealers.

The Committee informed that an Audited Report of CNG stations carried out by OGRA by its appointed auditors have submitted their final report to OGRA, and the auditors have highlighted the manufacturing cost of CNG on stations.

The members were also informed that SSGC has increased the load shedding period in Sindh to three days, and the rest of the days during the week SSGC deliberately maintains low pressure at the CNG Stations, causing great hardship to the Public resulting in wasting time in very long queue and damage to CNG costly equipments due to operations on alarmingly low inlet pressures.

Sheikh Abdul Waheed Sandal, Acting President FPCCI who also attended the meeting stated that the FPCCI Standing committee on CNG has its full confidence in Supreme Court and are extremely hopeful that relief would be given by the honorable Supreme Court on merit.

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Shahra-e-Firdousi,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk

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