SC questions on CNG pricing formula – Alfalah Securities Limited

Karachi, October 25, 2012 (PPI-OT): Supreme Court (SC) of Pakistan has sought explanation on the pricing formula determined by Oil and Gas Regulatory Authority (Ogra) under which the domestic CNG prices are linked with imported petrol on a weekly basis.

According to Alfalah Securities Limited, in this regard, SC has issued notices to SNGP, SSGC and Ogra. Since SNGP and SSGC files petition for gas price adjustment twice in a year, the prices of CNG should also be determined on bi-annually basis rather than on weekly basis and also that the domestically produced CNG should not be adjusted for Pak Rupee devaluation against US Dollar. SC court’s decision on CNG pricing would influence the inflationary pressures on the economy and the gas demand and distribution.