Temporary reprieve: Court extends stay order against LPG policy
Industry welcomes move; asks ministry to engage with them.
ISLAMABAD/LAHORE:
The Lahore High Court has extended a stay order against the government’s LPG (Production and Distribution) Policy 2011 until November 22, while it continues to conduct hearings into a petition filed by LPG marketing companies against the new law.
Justice Mansoor Ali Shah, who was presiding over the proceedings on Wednesday, suspended clauses 3.4, 3.4.1 and 3.4.2 of the law, which would have bound the local liquefied petroleum gas (LPG) industry to pay a petroleum levy equal to the freight charges paid by LPG importers. They would also be required to purchase at least 20% of their supplies from importers, or import LPG themselves.
Shahid Hamid and Aitzaz Ahsan, renowned corporate and constitutional lawyers, were representing the LPG industry.
Companies in the LPG business claim that the government’s new policy was discriminatory and anti-competitive, designed to provide an edge to state-owned corporation involved in the LPG import business.
Justice Umar Ata Bandial also heard a similar petition and suspended the same clauses on Wednesday, in a petition filed by another group of companies. The Oil and Gas Regulatory Authority (Ogra) was represented by the deputy attorney-general as well as Shaukat Pirzada.
The stay order was hailed by the LPG Association of Pakistan (LPGAP), a lobbying group for the industry. “The directives of the Lahore High Court have impacted the market very positively and prices have come down,” said Belal Jabbar, a spokesperson for the LPGAP.
Three separate cases have been filed against the LPG policy, which has become highly controversial owing to the advantages it builds in for state-owned companies. The LPG industry complains that the policy was never discussed with them or other stakeholders, which forced them to take legal action.
The Lahore High Court has extended a stay order against the government’s LPG (Production and Distribution) Policy 2011 until November 22, while it continues to conduct hearings into a petition filed by LPG marketing companies against the new law.
Justice Mansoor Ali Shah, who was presiding over the proceedings on Wednesday, suspended clauses 3.4, 3.4.1 and 3.4.2 of the law, which would have bound the local liquefied petroleum gas (LPG) industry to pay a petroleum levy equal to the freight charges paid by LPG importers. They would also be required to purchase at least 20% of their supplies from importers, or import LPG themselves.
Shahid Hamid and Aitzaz Ahsan, renowned corporate and constitutional lawyers, were representing the LPG industry.
Companies in the LPG business claim that the government’s new policy was discriminatory and anti-competitive, designed to provide an edge to state-owned corporation involved in the LPG import business.
Justice Umar Ata Bandial also heard a similar petition and suspended the same clauses on Wednesday, in a petition filed by another group of companies. The Oil and Gas Regulatory Authority (Ogra) was represented by the deputy attorney-general as well as Shaukat Pirzada.
The stay order was hailed by the LPG Association of Pakistan (LPGAP), a lobbying group for the industry. “The directives of the Lahore High Court have impacted the market very positively and prices have come down,” said Belal Jabbar, a spokesperson for the LPGAP.
Three separate cases have been filed against the LPG policy, which has become highly controversial owing to the advantages it builds in for state-owned companies. The LPG industry complains that the policy was never discussed with them or other stakeholders, which forced them to take legal action.
“The local LPG industry had no option but to approach the honourable courts given the [petroleum] ministry’s open hostility,” said Jabbar.
Published in The Express Tribune, October 6th, 2011.