ISLAMABAD - All Pakistan CNG Association (APCNGA) Chairman Ghiyas Abdullah Paracha on Wednesday said that CNG association played no role in devising price mechanism and an agreement for Compressed Natural Gas during 2008.

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Dispelling the impression about the existence of a cartel and monopoly of CNG association that played pivotal role in formulating 2008 memorandum of understanding (MoU), Chairman APCNGA Ghiyas said that this was simply a price notification, which in fact was devised by the government itself on August 25, 2008 and the price mechanism was already prepared. He further disclosed that this formula was devised after a series of meetings held on July 30, August 1 and August 4 by an economic monitoring committee and the CNG association was not among the participant of these meetings.

Leader of CNG association also revealed that former Chairman Federal Board of Revenue (FBR) Ahmad Waqqar, former Secretary Petroleum GA Sabri, the then Acting Secretary Board of Investment (BoI) Iqbal Ahmad, then Additional Secretary Finance Ministry Ayub Kahn Tareen and then Director General Hydrocarbon Development Institute of Pakistan (HDIP) Bilal A Raza were the members of this economic monitoring committee that had devised the formula which later on was approved by the ministry of Finance. He further made it clear that this process was kept in secret from the CNG association because on August 6, 2008, Director General Gas of the ministry of petroleum & natural resources (MPNR) through a letter No.CNG-7(9)/06-CNG price also declared that there is no need of any consultation with the CNG association in this regard.

Disclosing the actual reason behind this matter, Paracha said former Petroleum Minister Shah Mehmood Qureshi in a press conference wrongly replied the CNG price as of Rs55/kg instead of Rs45/kg over a question of a journalist. The then DG Gas was also present on the occasion. However, after the press conference when government felt sensitivity of the issue then to cover the minister’s mistake, the government immediately harped a note of price mechanism and price regulation to reduce the pressure appeared after the minister’s announcement. 

Ghiyas Paracha further went on saying that to him it is very obvious in clause 8 of the agreement that anywhere the government found over charging against the determined sale price then the government can regulate CNG sale price through Ogra. So MoU was not meant to regulate the CNG prices in the country.