“The civil bureaucracy responsible ‘to make effective the energy policy of the government’ failed to satisfy the highest court of the country regarding price mechanism of petroleum products,” a two member bench consisting Chief Justice Iftikhar Muhammad Chaudhry and Justice Jawwad S. Khawaja said as they heard the case on mechanism of fixing petroleum prices and of linking prices of gas to petrol.
“So don’t insist on theoretic arguments tell us why the common people are being crushed in the name of different charges and fluctuation in the prices of these products,” the bench asked Secretary Petroleum Dr Waqar Masood and Chairman Oil and Gas Regulatory Authority (OGRA).
The chief justice also asked “why is the burden always passed on to the consumers?”
The debates continued all day on this issue, after which the army of the secretaries finally confessed that gas, a domestically produced fuel, does not have anything to do with petroleum products, which are mostly imported.
Chief Justice Chaudhry though observed that the linkage of the price of imported petrol with the dollar is understandable however compressed natural gas (CNG) is domestically produced and questioned its linkage with the price of imported petrol.
Chairman Ogra Saeed Ahmed Khan informed the court that tariff is determined by OGRA subsequent to submission of a tariff petition by SNGPL and SSGCL twice a year (July and January). The Chief Justice observed that in that case tariff for the consumers should also be determined biannually instead of on a weekly basis.
Chairman OGRA also informed the court that gas price for consumers can be determined biannually upon which the Chief Justice queried how the authority would compensate the consumers for the weekly raise in tariffs paid so far.
The bench also observed that instead of acting as a regulator, Ogra has become a redundant body within the new mechanism of fixing petroleum prices. “Unfortunately, the government is now hands and gloves with the Oil Marketing Companies (OMC),” Justice Khawaja lamented.
Chief Justice Chaudhry said that there must be a mechanism under which OGRA should implement its policies as a regulator and should ensure the interests of the consumers.
The bench also made it clear that it will pass an order, probably on Thursday, about new arrangements for fixing petroleum prices.
Dr Masood told the court that the issue will be tabled in the ECC’s meeting as a parliamentary resolution has also been passed on this issue.
“But being an expert on the issue I must say that weekly basis review of prices formula was in betterment of the consumer,” Dr Masood maintained, who is also an economist with expertise on energy related issues.
The court also pointed out negligence of the incumbent government due to which billions of rupees losses incurred to the national exchequer during the tenure of illegal appointed chairman Ogra Tauqir Sadiq, who is currently proclaimed offender and, as per NAB’s submitted report before the court on Wednesday, facing a reference of Rs80.56 billion financial misappropriation in an accountability court of NAB in Rawalpindi.
Issuing notices to Managing Directors of Sui-Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) in oil pricing case, the bench sought a report on the formula used for gas pricing from Chairman OGRA Saeed Ahmed Khan.
COMMENTS (13)
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The Parliament and its committees have been sufficiently empowered through the Consititution to keep check on the day to day working of the government, the Supreme has no authority to interfere unless someone voilates the Constitution. The Parliament and its committees have suficienly been empowered to keep check on the day to day working of the Government. Most probably the intervention has been made under Article 184 (3) of the Constitution, the situation does not fall within the ambit of this Article. By revising the prices weekl or monthly the government is not contravening any provision of the Constitution therefore, it is not subject to interference by the Supreme Court under its extra ordinary constitutional jurisdiction.
Maybe His Highness Iftikhar Chauhdry should declare himself the President, Prime Minister, Finance Minister of Pakistan.
Now the SC will dictate economic policy as well to the government!
@Logic Europe: Thank you sir for making sense in this useless exercise in futility. The populist political campaign of the PCO SC judges keeps going. The entire SC judges have nothing better to do but to control the commodity prices of sugar, petrol, gas and even samosa! Yet we pay them an arm and a leg. Cheers, Mirza
your observation is childish gulf states have very high earnings so they can afford to sell petrol cheap, Pakistan has limited income if it sells the gas cheaper it will be subsidising and loosing all the revenue The high salaries of supreme court will be then reduced to few thousand a month and they won't get 600 litres of Petrole a month to burn supreme court seems to know very little about economics and politics Life is not that simple @Sajid Iqbal:
Ch. Iftikhar knows everything about economy and security, but nothing about the law and constitution.
I wonder why these pearls of wisdom have not reached US markets, as here local as well as global oil and gas prices are the same. you can have different prices only in contained societies. But that way you risk the chances of smuggling.
Biannually?!? Now that is again too aggressive. Revisions should be done on the 15-day mark. The main question is who is calculating the rise and fall of these prices. If we have an efficient planner, the prices can be managed fairly easily. Weekly revisions shows two things: a) the people do not know their financial risk planning enough or b) the exchequer is pretty much empty and we are living in 'check to check' mode. Both are not good for the economy.
@Sajid Iqbal: Sir they should but their rich govts subsidize them. Now that is something to consider if possible. People need all the breaks they can. I am all for a welfare state where the resources are devoted to public not the army and WMD. Regards, Mirza
@Mirza: By your formula petrol prices in Gulf should match Pakistan. How come you compare fuel prices to commodities like Gold and Silver?
Chaudhry is now an expert in commodity pricing, how blessed we are
The person responsible for all this mess resigned a couple of days back and he is a dual national.
Wonder if anyone will be ever able to question the pro oil cartel decisions taken by him in any court of law.
SC why do you not take the whole country in your control? Because you are cheaking everything. I never have seen such a case in Denmark. BTW I think you are our government and you are our army and police also. I'm very proud of your work and your presentation in every case. May the lord og heavens and earth bless you and insha'allah the shariah will be established in whole pakistan and unit pakistan. Many pakistani institution is just looking at each other when they are facing serious problems but the Supreme court had taked everything in their hand. I'm afraid i don't hope the supreme court of pakistan will collaps.
Oil and gas are commodities and traded globally where their prices are determined based upon supply and demand. Gold and silver as also similar commodities and their prices are set globally. Based upon the SC CJ's argument there should be one price of imported gold but if it is locally produced it must be sold cheap! Of course it is always the end user who always pays the bills which are based upon supply and demand.