News
Wednesday, June 06, 2012
CNG stations go on indefinite strikeISLAMABAD: Petroleum mangers in principle decided to impose higher cess rate on CNG sector under the head of proposed Gas Infrastructure Development Cess (GIDC) in finance bill 2011, resultantly All Pakistan CNG Association (APCNGA) announced on Tuesday to shut the gas stations down for indefinite period across the country. To generate revenue of amounting Rs 102 billion for initiating new gas import projects including Iran Pakistan (IP) gas pipeline and Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project, ministry of petroleum and natural resources proposed Gas Infrastructure Development Cess (GIDC) rate up to Rs 300 per Million British Thermal Unit MMBTU for Fiscal year 2012-13. While the federal government expected to generate revenue of Rs 30 billion through existing cess rates fixed for CNG, Fertiliser and power sector. The finance bill, titled GIDC Act 2011, second schedule revealed that petroleum managers proposed rate of Rs 300/MMBTU for CNG sector lying under region-I comprising KP, Balochistan and Potohar (Rawalpindi, Islamabad and Gujar Khan), while Rs 200/MMBTU has been set for region-II Sindh and Punjab (excluding Potohar Region). However, the CNG sector strongly condemned the newly proposed cess rate and decided to discontinue the sale of CNG across the country from today (Wednesday) until indefinite period as their demands, including the revision of GIDC rate for CNG sector could not meet in proper manner. Addressing a press conference, APCNGA office-bearer Ghayas Abdullah Paracha alleged that Petroleum Minister Dr Asim Hussain proposed to increase the cess rate on CNG sector just to replace price-wise cheap motor fuel with the Liquefied Petroleum Gas (LPG) to facilitate their favourites. More than 25 million vehicles, both private and commercial, could be affected due to the government’s proposal, adding, “We are discontinuing CNG sale for indefinite period. In the second phase, the fuel stations will also be dysfunctional.” zeeshan javaid
Courtesy www.dailytimes.com.pk