ISLAMABAD:
The civil bureaucracy failed to justify to the Supreme Court the weekly review of petroleum product prices, leading the court to strongly question the government’s energy policy.
While hearing the petrol prices case on Wednesday, an apex court bench announced it would pass an order, most probably today (Thursday), regarding a new arrangement of petroleum prices.
The bench also strongly criticised linking prices of gas with prices of petroleum products, calling the move an illegal decision of “able bureaucrats” of the country.
After a day-long debate on the issue, secretaries of relevant ministries, confessed before the court that gas, a domestic product, has nothing to do with petroleum products.
“Don’t insist on theoretic arguments and tell us why common people are being crushed in the name of different charges and fluctuation in the prices of these products,” the bench asked Petroleum Secretary Dr Waqar Masood and the Oil and Gas Regulatory Authority (Ogra) chairman. “Why is the burden always passed on to the consumers?” Chief Justice Iftikhar Muhammad Chaudhry said.
The bench observed that instead of a “regulatory” body, Ogra had become a “redundant body,” given the new mechanism of reviewing petroleum prices on a weekly basis.
“Unfortunately, the government is now hand in glove with the Oil Marketing Companies (OMCs),” Justice Jawwad S Khawaja said.
Justice Chaudhry said that there must be a mechanism under which Ogra could implement its policies as a regulator and ensure the interests of the consumers.
Petroleum Secretary Dr Masood told the court that the issue of weekly reviews of prices would be tabled in a meeting of the Economic Coordination Committee.
“Being an expert on the issue, I must say that a weekly review of prices is for the betterment of the consumer,” he said.
The court also pointed out negligence on part of the government, due to which billions of rupees worth of losses were incurred by the national exchequer during the tenure of the illegally appointed Ogra chairman Tauqir Sadiq.
Sadiq is currently a proclaimed offender and is facing a reference for financial misappropriation of Rs80.56 billion in an accountability court of the National Accountability Bureau.
Linking prices of gas with petrol products
Chief Justice Chaudhry observed that while linking the price of imported petrol with the price of the US dollar is understandable, CNG is domestically produced and its linkage with the price of imported petrol is questionable.
Ogra Chairman Saeed Ahmed Khan informed the court that the tariff is determined by Ogra, subsequent to the submission of a tariff petition by the Sui-Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) twice a year, in July and January.
In that case, the chief justice observed, the tariff for consumers should also be determined biannually instead of on a weekly basis.
Khan informed the court that gas prices for consumers can be determined biannually, upon which the chief justice questioned how the authority would compensate consumers for the weekly raise in tariffs paid so far.
The court has issued notices to the managing directors of the SNGPL and SSGCL and also sought a report on the formula used for gas pricing from the Ogra chairman.
Published in The Express Tribune, October 25th, 2012.
COMMENTS (10)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Hello you guys read it carefully it is a "CASE" not a "su-muto action" ! Means someone has filed it for hearing in SC..... On the other hand in four/five years it is the only CASE which is affecting (positively) comman pakistani directly.
@Hamid Ahmed: Maybe if the NAB and PAC were doing their job the SC won't have to. Or maybe the FIA. In the land of the corrupt the SC is the only hope.
Any shortfall in revenue as a result of SC interference will be made up through new taxes. What’s the point. SC is looking for cheap popularity here.
SC takes action on two bottles of wine, sugar prices, gas prices and even samosa. These huge army of judges have nothing better to do except make political speeches. From Sugar to wheat, gold, silver copper, oil, edible oil and other commodity prices fluctuate every moment and it is a global phenomenon. Pakistan or even the US has no control over commodity prices except to subsidize them for people. Rich dictatorships and kings do it to keep their rule intact, can Pakistan afford it? One ounce of gold or silver or a barrel of gas would be priced the same whether it is produced locally or imported.
@Hamid Ahmed & Nadir:
Rather than bad mouthing all the time learn to give credit once in a while where it belongs. Beside corruption, what has this governemnt given to masses? Go out and see for yourself how those who can't feed their families are killing themselves while Dr. Asim and his cronies looted from poor people of Paksitan.
This is turning into a mess. What expertise does the SC have as a regultor? They did the same thing intervening in wheat and sugar markets a couple of years ago, and that turned into a total mess. First review some basic econ, then make these statements.
Job of SC is to see if law has been violated, SC has no role in policy matters, SC should stop making comments which are un-called for, these issues belong with politics and politicians. By the who rendered ECP redundant as far as disqualification of parliamentarians is concerned? Who made parliamentary committee for appoint of judges as redundant? SC, stop politicking and start doing what you are supposed to do.