Peshawar High Court Suspends Recent Increase in CNG Prices

The Peshawar High Court on Tuesday suspended a notification issued by the federal government regarding the increase in gas price for CNG sector with the effect limited only to Khyber Pakhtunkhwa. Last month the compressed natural gas (CNG) dealers raised the fuel price by up to in the range of Rs109-115 per kg from Rs96 in Khyber Pakhtunkhwa following the government’s decision to increase the natural gas tariff for CNG sector. However, the decision to increase the gas price was challenged in the Peshawar High Court.  The petitioner submitted that the gas price was increased without the consultation of the Oil and Gas Regulatory Authority (OGRA) which is the apex regulator of the sector. ALSO READ Govt Cuts LPG Prices by 10% The petitioner pleaded the court to declare the government’s decision to increse the CNG price null and void.  The petition came up for hearing before a bench of the PHC. The court after hearing preliminary arguments of the petitioner’s counsel suspended the notification of the government relating the increase in CNG prices with the effect limited only to Khyber Pakhtunkhwa. The court issued notices to Federal Government, Chairman ORGA and Managing Director Sui Northern Gas Pipeline Limited (SNGPL) and sought their replies on the petition. In October, CNG dealers in Sindh increased the fuel price by up to Rs22.33 per kilogramme following the government’s decision to increase gas tariff for the sector. ALSO READ OGRA Notifies Up to 143pc Hike in Gas Tariff for High-End Users The increase in the CNG price for Sindh consumers was in the range of Rs16.30 to Rs22.33 per kg, which stood between Rs98 and Rs104 compared to earlier Rs81.70 per kg. The government has revised upwards the gas supply price for CNG fuel stations by 40 per cent to Rs980 per million British thermal units (mmbtu) from Rs700 earlier. Khyber-Pakhtunkhwa (K-P) and Balochistan-based dealers increased CNG prices in the range of Rs109-115 per kg from Rs96 earlier.