‘Too little’: Reduction in POL prices challenged in LHC

The federal government’s notification of price reduction in petroleum products was challenged in Lahore High Court (LHC) on Friday with a request to set it aside as it did not reflect the pace at which the prices were being decreased in the international market.

The petition was filed by an NGO, Judicial Activism Panel (JAP) via its head advocate Azhar Siddique.

It was implored in the petition that Finance Minister Ishaq Dar recently announced slashing prices of petroleum products by up to Rs10 per litre for the next fortnight. Petrol and diesel will now be available at Rs214.80 and Rs227.82 per litre, respectively, after a reduction of Rs10 and Rs7.5 per litre, it added.

Advocate Azhar Siddique contended that the decline comes amid a drop in international oil prices. "As of December 15, Brent crude futures were down 33 cents or 0.4% at $82.37 a barrel by 1453 GMT and US crude futures lost 43 cents or 0.6% to $76.85 while chairing a meeting on fuel prices," he said.

Read more: Govt slashes petrol price by Rs10 per litre

Azhar said that the people endured a difficult time, and now they had the right to receive full relief. "At present, the petroleum levy on petrol stands at Rs10 per litre and Rs5 per litre on HSD, kerosene oil and LDO each. However, the sales tax on them is zero. The National Assembly approved a rise in the maximum limit of the petroleum levy from Rs30 per litre to Rs50 per litre to achieve the budgetary target of Rs750 billion in the Finance Bill 2022-23," the petition stated.

The prices of HSD, petrol, kerosene oil and LDO have skyrocketed by 92% (Rs132.39), 66% (or Rs99), 95% (Rs111.95) and 80% (Rs100.59) respectively since May 26, when the government introduced the first of a series of fuel price hikes.

The petition stated that there is no justification behind the aforementioned increase in prices of the POL products as there is no mechanism in place to decide the rate of increase in price.

"NEPRA law and rules/regulations have provided a mechanism for the deciding of tariff, however, OGRA does not have such a mechanism in place. Even otherwise, the state is responsible to protect the lives of citizens of Pakistan under the umbrella of fundamental rights as enshrined under Articles 9, 14, 25 and 4 & 5 of the Constitution being custodian of its citizens under its constitutional obligations."

Azhar prayed to the court that the recent and abrupt decrease in international markets of petroleum, the fixation of prices of petroleum products by the federal government is prima facie without any legal justification.

He requested the court to accept the petition and the notification with regards to the petroleum products may kindly be set aside as the prices of petroleum products are reducing rapidly in international markets.