Failure to respond to CCP letter: CNG station owners body may face Rs one million fine
-
22/07/2008
-
Business Recorder (Pakistan)
The Competition Commission of Pakistan (CCP) is considering imposing a penalty of Rs 1 million on the CNG Station Owners Association for failing to submit information whether it has any role in the fixation of retail prices of CNG, it was learnt.
Sources told Business Recorder that the association had been asked to submit information about its working by July 21, as investigation was being conducted since the OGRA had referred the case of price fixing of CNG to the CCP. But the CNG association had not provided information about its working so far and could face a penalty of up to Rs 1 million under the competition law, they added.
The CNG Station Owners Association had increased CNG prices by Rs 13 per kilogram which they had reduced slightly after the government came up with a clarification that the prices were jacked up between Rs 5-6 per kg. The reports say that CNG stations are still charging much higher prices than the actual increase made by the government.
There was a perception of alleged collusive price fixed by the CNG Station Owners Association, they said and added that the OGRA had not only disassociated itself from the price fixing but also said that law did not allow any CNG association to fix the prices in a letter written to the association.
The CCP on July 9 in a letter to the Chairman of the CNG Association has forwarded a questionnaire for answer. The association was asked whether CNG prices were exclusively fixed by the association or there was any role of the regional association as well.
The CCP also wanted to know if the association had ever asked its members to stop supply of CNG and how it was possible that prices of CNG were uniform across the country. The other question included whether there was any price monitoring system compulsory for all CNG stations.
Sources said that there would be no other option but to impose penalty on the association if answers of these questions were not received in couple of days. They, however, hope that the association might have sent their response, which could obviously take couple of days more in reaching from Karachi.