OGRA approaches court for vacation of previous status quo maintenance order on new rules. PHOTO: FILE
The notices were issued after the Oil and Gas Regulatory Authority (Ogra) requested the court to vacate its earlier order, under which the status quo was to be maintained.
The new oil rules require petroleum refining and marketing companies to immediately apply for fresh licences to continue operations or risk faicing punitive action.
On Friday, Justice Miangul Hassan Aurangzeb issued notices to the parties with directions to submit replies by August 3.
The petitioners, comprising of five oil refineries, 13 oil marketing companies, and one oil transportation company, have challenged Ogra’s instructions to obtain new licences within 90 days, under Rule Six of the Pakistan Oil Rules 2016.
In the petition, the management of leading refineries and marketing companies have assailed Ogra’s notices and have also challenged the powers granted under the new rules.
The counsel for the petitioners had submitted that under section 6 (2) (b) of the Ogra Ordinance, rules for regulation are to be framed by the authority in consultation with licensees. He also contended that no such consultation was made with them prior to the framing of rules.
Under the rules, he said, all oil refineries, marketing companies and oil pipeline companies are required to make a non-refundable Rs2 million fee payment for grant, renewal, modification, extension, assignment, review, transfer, amendment, relocation or re-issuance of a licence.
Moreover, he added, the petitioners are also required to pay 0.005 per cent of gross sales. He prayed the court to declare the notifications illegal.
Following the arguments, the court ordered that the status quo be maintained.
Published in The Express Tribune, July 30th, 2016.
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