Hearing adjourned due to death of judge
The court had sought comments from the federal govt
Sindh High Court. PHOTO: EXPRESS
KARACHI:
The Sindh High Court adjourned the hearing of a petition challenging the recent hikes in compressed natural gas (CNG) prices. A two member bench, headed by Justice Muhammad Ali Mazhar, was supposed to hear the petition on Friday but due to death of Justice Zahid Qurban Alvi, the hearing could not proceed. The petition was filed by the Sindh Petroleum and CNG Association. The court had asked for comments from the federal government over the petition.
The Oil and Gas Regulatory Authority (OGRA) in its reply had said that gas prices were increased keeping in view the situation of world markets. Gas prices were increased due to the rise in dollar rates and were increased strictly in accordance with the law.
CNG prices set to rise by up to Rs22.33 per kg
The petitioner had asked how the common man would be able to bear the burden if CNG rates were higher than petroleum prices. It is for the first time that petrol prices are lower than CNG prices. Petrol is imported while gas is produced in Sindh, the petitioner had told the court, adding that the notification for increase of CNG prices by OGRA was illegal.
OGRA had recommended a 17% increase in the price of gas supplied by the Sui Southern Gas Company (SSGC) and a 30% increase in the price of gas supplied by the Sui Northern Gas Company (SNGC). However, the federal government acted against OGRA’s recommendation and imposed a uniform increase of 40%. It is against the law to increase rates of both distribution companies on a uniform basis. There is a clear difference between the losses of both the companies. OGRA is autonomous in its role to determine gas prices.
OGRA notifies up to 143% increase in gas prices
The federal government is only authorised to give policy to OGRA. The federal government cannot raise or cut prices set by OGRA. The CNG sector will be devastated after gas prices are increased in excess of the petrol prices, said the petitioner, claiming that CNG was already not available for consumers for three days a week. OGRA’s notification should be suspended, he pleaded, adding that excessive prices of CNG must not be allowed until the decision for the petition.
Published in The Express Tribune, November 10th, 2018.
The Sindh High Court adjourned the hearing of a petition challenging the recent hikes in compressed natural gas (CNG) prices. A two member bench, headed by Justice Muhammad Ali Mazhar, was supposed to hear the petition on Friday but due to death of Justice Zahid Qurban Alvi, the hearing could not proceed. The petition was filed by the Sindh Petroleum and CNG Association. The court had asked for comments from the federal government over the petition.
The Oil and Gas Regulatory Authority (OGRA) in its reply had said that gas prices were increased keeping in view the situation of world markets. Gas prices were increased due to the rise in dollar rates and were increased strictly in accordance with the law.
CNG prices set to rise by up to Rs22.33 per kg
The petitioner had asked how the common man would be able to bear the burden if CNG rates were higher than petroleum prices. It is for the first time that petrol prices are lower than CNG prices. Petrol is imported while gas is produced in Sindh, the petitioner had told the court, adding that the notification for increase of CNG prices by OGRA was illegal.
OGRA had recommended a 17% increase in the price of gas supplied by the Sui Southern Gas Company (SSGC) and a 30% increase in the price of gas supplied by the Sui Northern Gas Company (SNGC). However, the federal government acted against OGRA’s recommendation and imposed a uniform increase of 40%. It is against the law to increase rates of both distribution companies on a uniform basis. There is a clear difference between the losses of both the companies. OGRA is autonomous in its role to determine gas prices.
OGRA notifies up to 143% increase in gas prices
The federal government is only authorised to give policy to OGRA. The federal government cannot raise or cut prices set by OGRA. The CNG sector will be devastated after gas prices are increased in excess of the petrol prices, said the petitioner, claiming that CNG was already not available for consumers for three days a week. OGRA’s notification should be suspended, he pleaded, adding that excessive prices of CNG must not be allowed until the decision for the petition.
Published in The Express Tribune, November 10th, 2018.