ISLAMABAD: Even as gas supply to CNG stations is down to just 18 hours a week, the Economic Coordination Committee (ECC) lifted a ban on the import of CNG kits and cylinders for factory-fitted vehicles, but deferred a decision on gas tariff, ostensibly to avoid taking an unpopular decision in Ramazan.
Chaired by Finance Minister Ishaq Dar, the ECC also deferred a proposal from the Ministry of Petroleum and Natural Resources to increase CNG prices for consumers by another Rs5.50 per kilogram to placate CNG operators.
“We appreciate your business-friendliness in the truest sense and understand that you want businesses to grow. But we also have to look at things from a political angle,” Finance Minister Ishaq Dar was quoted by a participant as having said to Petroleum Minister Shahid Khaqan Abbasi.
Mr Abbasi was pleading for an increase in the consumer tariff, as approved by the regulator. He said consumer gas prices could not be notified unless the ECC took a decision and insisted on one, because it involved the financial health of the gas companies and was a legal requirement for the gas price adjustment with effect from July 1.
“We cannot afford new controversies at this stage,” said Mr Dar and directed that discussion on matters relating to the consumer gas tariff, a change in gas losses, efficiency standards and CNG tariff be deferred. Sources privy to the development said Mr Dar was simply unwilling to take decision on issues that had attracted the attention of the judiciary in the past and a few cases were still pending at various stages involving two former prime ministers and a former chairman of the Oil and Gas Regulatory Authority. They said the issue was on the backburner for at least one month.
At the request of the Petroleum Ministry, the ECC allowed the import of CNG cylinders, kits and related parts for the conversion of vehicles at manufacturing and assembling facilities of original equipment manufacturers because an Italian firm had set up a factory in Pakistan for export purposes.
The ECC had refused to lift the ban on import of CNG kits, cylinders and parts in January, citing gas shortage. The CNG sector was, at the time, getting gas 72 hours a week. This is now down to 18 hours.
The ECC ordered the ban be lifted when Ogra reported that it was resulting in the production of low-quality local cylinders, which are a major health risk.
