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Ministry of Petroleum has not imposed any new Tax on Compressed Natural Gas

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Islamabad, June 06, 2012 (PPI-OT): Secretary Petroleum and Natural Resources Mr. Muhammad Ejaz Chaudhry has vehemently denied the position taken by CNG Association for their unjustified strike. The factual position is that the Ministry of Petroleum and Natural Resources has not imposed any new Tax or cess on CNG.

The proposed increase in Gas Infrastructure Development Cess is a part of Money Bill by Finance Division which is proposed to be levied in a phased manner on all sectors with a rational approach and understanding.

The Secretary also took notice of the incorrect figures of gas consumption by CNG sector as being propagated by CNG Association. Factual position is that CNG consumption is increasing day by day and is at present over 400 MMCFD on systems of both the companies i.e. SNGPL and SSGCL. As a result, the Fertilizer Plants and Power Sector is badly suffering.

The Ministry once again clarifies that there is no discrimination in gas allocation, tariff, cess and management towards CNG sector. All these facts were clarified to Mr. Ghias Paracha, Chairman, APCNGA but the response is, regretfully not positive, and it amounts to playing with the emotions of the general public.

The Secretary once again appealed that the strike is uncalled for, unjustified and should therefore be called off immediately.

For more information, contact:
Ministry for Petroleum and Natural Resources
Tel: +9251 921 0220 -9206416
Fax: +9251 921 3180
Email: minister@mpnr.gov.pk

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