All Pakistan Compressed Natural Gas Association (APCNGA) Demands Reduction In Gas Price

(@FahadShabbir)

All Pakistan Compressed Natural Gas Association (APCNGA) demands reduction in gas price

All Pakistan Compressed Natural Gas Association (APCNGA) on Wednesday demanded of the government to reduce gas prices as per the decrease in rates of crude oil and High Sulphur Furnace Oil (HSFO) at international level

ISLAMABAD, (UrduPoint / Pakistan Point News - 3rd Jun, 2020 ) :All Pakistan Compressed Natural Gas Association (APCNGA) on Wednesday demanded of the government to reduce gas prices as per the decrease in rates of crude oil and High Sulphur Furnace Oil (HSFO) at international level.

"Gas prices are linked with the rates of crude oil and HSFO sold in international market, which went down significantly during the last few months. So, its benefit be passed on to the common man," APCNGA Central Chairman Ghiyas Abdullah Paracha said while addressing a news conference here at the National Press Club.

He threatened that the association would observe a countrywide strike, if the commodity price was not reduced as per the existing gas pricing formula of the government as well as Oil and Gas Regulatory Authority (OGRA).

Paracha said APCNGA's Central Executive Committee meeting had decided that other industrial sectors would be taken along to get its demand fulfilled.

He claimed that a 45 percent reduction was possible in the gas prices under the present gas pricing formula. "Gas price can be reduced from Rs637/MMBTU (Million British Thermal Unit to almost Rs318/MMBTU, if the present gas pricing formula is applied.

" Elaborating, he said, OGRA had fixed gas price at Rs637/MMBTU for all the consumers in which Rs541 was the cost of gas while Rs96 was for transportation, profit, losses, and theft etc.

The association chairman said the government should encourage private sector to import Liquefied Natural Gas (LNG), which would help provide economical gas to masses.

Presently, he was of the view that the LNG was available at the cheapest price in the world, urging the government to immediately allow private companies to import LNG so that masses could get benefit of reduced prices of the commodity in the international market.

Paracha said the gas sector was playing an important role in strengthening the national economy, adding "apart from CNG and transport sector, most of the electricity is produced through gas, 90 percent industry including the export industry is being run on the gas, fertilizer industry, and masses in cities also consume gas."He said reduction in gas price would help save billions of rupees on daily basis, stabilize the national economy, and bring the energy crisis to an end.