Upper House: Senators question OGRA’s prerogative

Demand reversal of fuel price increase, stage walkout.

ISLAMABAD:

Senators from all parties lashed out against the ruling party on Tuesday for the recent increase in prices of petroleum products and staged walkouts demanding an immediate reversal of the decision.

They also insisted on the suspension of petroleum development levy (PDL) to stabilise domestic prices and flayed the Economic Coordination Committee’s (ECC) decision to review fuel prices weekly.

Leader of Opposition in the Senate Ishaq Dar kick-started the debate, saying “the government should freeze PDL and come up with a transparent mechanism to provide relief to the downtrodden masses. For heaven’s sake, decide once and for all what system is to be followed.”

PML-N Senator Nuzhat Sadiq said deliberations over increasing oil prices required public hearings and that Ogra was violating laws by taking arbitrary action. She went on to allege the government was earning Rs38-40 per litre of petrol and maintained it made Rs250 billion through taxes on petroleum products last year.

Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain, however, insisted no hidden formula was employed. “Ogra is the independent authority for fixing the price.”

Upon this, Senate Chairman Nayyar Hussain Bokhari said Ogra should be answerable to both houses of parliament and told Hussain that since Ogra falls under the purview of the petroleum ministry, the authority’s decision should be scrutinised by the former.

Hussain said the decision was taken after consultation with the industry and that revenue generated from taxes on petroleum products was shared with all the provinces.

Defending the PDL, he said the tax brought in Rs69 billion for the national exchequer. He added oil marketing companies (OMCs) in Pakistan had the lowest margin in the world and would leave the country if it was not increased.

Criticism across the board

“The government has pushed poor people into a blind alley by increasing the prices of petroleum products,” said Senator Tahir Hussain Mashhadi from the Muttahida Qaumi Movement, which is an ally of the ruling Pakistan Peoples Party (PPP) in the coalition setup. “It’s financial murder of the people and we want justice.”

Senator Zahid Khan of the Awami National Party (ANP) said the government needs to keep a check on the Oil and Gas Regulatory Authority (Ogra). “There is no sacred cow like it (Ogra) in the entire state.”

Concerned about winning over the people in the upcoming elections, Khan said “people will not forgive us and never vote for us again.”

Another ANP Senator, Haji Adeel said the negative impact on the industry, agriculture and transport sectors, would further augment the sufferings of the common man by pushing up the price of edibles and other consumer goods.

Before he staged a walkout, Adeel asked Dr Asim Hussain to do some “practical work.”

Jamiat Ulema-e-Islam (Fazl) Senator Hafiz Hamdullah put forward the idea of diverting Rs70 billion, allocated to the Benazir Income Support Programme (BISP), towards the energy sector.

The Upper House will meet again on Wednesday at 5 pm.

Published in The Express Tribune, September 5^th, 2012.