Notices issued: OGRA’s authority to regulate CNG prices challenged

The law that empowered Ogra to fix prices has lapsed, argues petitioner.

KARACHI: A division bench of the Sindh High Court ordered on Tuesday notices to be issued to the federal secretaries of the ministries of petroleum on a petition which questions the authority of the Oil and Gas Regulatory Authority (Ogra) to regulate the prices of CNG.

Justice Maqbool Baqar and Justice Shafi Siddiqui were hearing a constitutional petition filed by an NGO, United Human Rights Commission Pakistan, challenging the existence of Ogra and its power to increase or decrease CNG prices.

Earlier, the honorary secretary of the NGO appearing in person submitted that in February 2009, an amendment was brought into Ogra Ordinance 2002 where in a section -- 43(b) -- was inserted, empowering Ogra to regulate and fix prices of CNG and other petroleum products.

The ordinance lapsed and was not assented to by parliament, rendering Ogra illegal and without any legal backing or authority, the petitioner argued.

The petitioner questioned the mechanism of determining the prices and also the new licenses to more than 5,500 CNG stations despite a shortage of natural gas in the country.

The issue of faulty policy of the ministry of petroleum was also agitated in the petition. The petitioner maintains that general public is suffering due to irrational policies of the government.

The court was prayed to declare that Ogra has no powers and legal backing and hence was not empowered to take decisions in respect of price of CNG.

The court after initial hearing ordered issuance of pre-admission notices to the respondents while they were also asked to file their written comments in the petition.

Another identical petition challenging the recent raise in POL and gas prices was adjourned indefinitely as petitioner, Moulvi Iqbal Haider, was not in attendance when the case was called in.

Published in The Express Tribune, April 4^th, 2012.