APCNGA Crude slips from $61 to $30, high sulphur down from $391 to $15, Ogra can reduce gas prices by implementing pricing formula CNG price is linked to oil, should be reduced: Ghiyas Paracha | CustomNews.pk

APCNGA Crude slips from $61 to $30, high sulphur down from $391 to $15, Ogra can reduce gas prices by implementing pricing formula CNG price is linked to oil, should be reduced: Ghiyas Paracha

The All Pakistan CNG Association (APCNGA) on Monday said prices of local gas are linked to the oil price in the international market, therefore its price can be reduced by 40 percent amid unprecedented crude crisis. Any hike in the price of oil in the international market is implemented in the country without any delay but masses are deprived of benefit if the prices collapse in the international market, said Ghiyas Abdullah Paracha, Central Chairman APCNGA. Following the steep fall in the oil prices the gas companies have not reduced gas prices to earn billions of rupees per day while keeping the consumers deprived which should be noticed as the masses, CNG sector and all other consumers badly hit by extended lockdown deserve relief, he added. Ghiyas Paracha said that consumers are made to pay the price of gas which is only justified when crude is at 61 dollars but lately it has retreated to $20 and now settled below $30. Similarly, he said that the price of High Sulphur Oil has collapsed from $350 to $151 in the international market and there is no chance of a rebound in the near future but gas prices are kept unchanged which is unjustified. Leader of the CNG sector said that the government should take note of the situation, issue guidelines to Ogra under Rule 21 and the regulator should take steps to reduce the price after conducting public hearings on an urgent basis. He said that reduction in gas price should not be delayed as the Ogra has the legal authority to do so and its quorum is still intact while it can break any time which will help companies to enjoy billions at the cost of consumers and economy reeling under severe pressure. The gas companies are reluctant to transfer the benefit of reduced prices to consumers to continue the unjustified windfall without realising the masses and business community need some relief in these difficult circumstances, he said. The Sindh High Court has also issued directives to Ogra in the regard, he said, adding that the consumers should not be burdened with the losses, failed recoveries, inefficiency mismanagement and other losses in the gas companies. He informed that safeguarding the rights of consumers and investors is the duty of Ogra which should be discharged while the CNG sector should not be burdened with the cost of the subsidy to the favourite sectors so that thousands of CNG dealers, workers and an investment of Rs450 billion could be saved.
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