CNG dealers threatens to go on strike unless the petroleum ministry retract the price hike

CNG dealers threatens to go on strike unless the petroleum ministry retract the price hike

Monday, April 2, 2012: Compressed natural gas (CNG) dealers all across Pakistan have threatened to go on an indefinite strike unless the petroleum ministry retract the price hike that it has set at start of this month.

CNG dealers are considering the recent increase in gas prices illegal. Speaking at a press conference, Abdullah Ghiyas Paracha, Chairman All Pakistan CNG Association Central, along with other office-bearers, said the industry would
try to get a stay order from the Lahore High Court against the hefty increase in gas prices.

“A case has been filed in the high court which will conduct a hearing today (Tuesday),” he said. Abdullah also called for withdrawal of the Rs11 per kg increase in CNG prices, if not the association would launch a long march and
stage strike for an indefinite period.

Abdullah also highlighted the importance of the industry by saying that it was paying a big amount in taxes. “We are paying taxes of over Rs4 billion daily to the government according to the Federal Board of Revenue (FBR),” he
said. “We are paying 26% general sales tax and 26% GST on cess.”

On Saturday last week, the government increased CNG prices by Rs9.93 and Rs11.58 per kg, effective from April 1.

Abdullah lashed out at the government for intentionally trying to crush the CNG industry. He was of the view that the Oil and Gas Regulatory Authority (OGRA) could not notify increase in gas prices and took an illegal step because
of hearing of petitions filed by Sui Northern Gas Pipelines Limited (SNGPL) in the court.

“We want the government to impose an equal rate of gas infrastructure development cess on every sector which is consuming gas,” he said and criticised the government for putting a major burden of the tax on the CNG industry.

Short URL: https://www.newspakistan.pk/?p=17917

Posted by Wajahat Javed on Apr 3 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry