SC says no to weekly revision of CNG prices
The order stated that since CNG is produced locally and has no connection to the international market, operating costs and present profit on CNG prices is against the law.
The court said that CNG prices will not be revised on a weekly basis and said there will be no parity of CNG prices with those of petrol.
The report presented by Ogra had stated that owners were making Rs11 per kg profit and Rs20 per kg operating cost on CNG.
Earlier, it was claimed that the increase in CNG prices under a weekly mechanism is in violation of the Oil and Gas Regulatory Authority (Ogra) Ordinance, 2002, it has been claimed.
Industry sources said that CNG prices cannot be changed without adopting the procedure laid down in the ordinance which binds Ogra from fixing prices after a public hearing with the participation of stakeholders to meet revenue requirements sought by gas utilities.
COMMENTS (29)
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@Hu:
Are you an expert on oil & law matter ? does it make sense to revise prices every week, when Ogra representative conceeded that this is unlawful bcz Ogra ordinance allows revision only 2 times a year...what wud one expects when we have Ogra Chairman Dr Asim who is a physician by profession & member of senate - a dual national ( has render his resignation recently ) but was following only govt orders. if you wud have followed the details of this case, I m sure yr answer wud have been more realistic....it also seem that any step that will benefit the poor is not appreciated...was this not the responsibility of the political parties to take up this issue in the parliament ? which forced an ordinary citizen to approach SC, who had to give its ruling based on facts & details provided by Ogra....so what sin SC has done ?
@Usman:
Excellent answer....!
@Nadir:
Oil & Gas are two different fuels...one imported & other local...so, how can you link the price of both same ? not by any logic ? all details of costing was provided by Ogra themselves & SC took decision based on it, by the way, the SC did not order Ogra to lower price, they announced it before SC even read out its interim order, because there were many other hidden elements which wud have otherwise got exposed ( those are getting out in public now- thanks to our active investigative media ).Would suggest read the SC interim order as it seem most of us especially some lawyers have commented without reading it too....this was suggested also by the newly elected President of SCBA Mr Israr who got support from Ms Asma group & Peoples Lawyers forum, both govt sponsored...
@huzaifa:
Those days of according preferential treatment to Pakistan by KSA & Iran is gone....no more oil on discount, only deffered payment on case to case basis....
@Mard-e-Haq:
Both are busy filling their coffers....otherwise people wud not hv been approaching the SC for releif....
I would like to request our most honorable supreme court to focus on fixing the judicial system and ensure speedy justice to the masses.
and please, please, please, please, please, please leave the economy to auto-correct itself (as happens in free markets).
Very soon the gas supply will go the route of energy supply to power plants. No money to import gas. Nothing is free under the sun. You pay now or you pay later. Government is not your Ginny to balance your household budget. In global village commodity prices are not controlled by individual government. Government subsidy for gas will affect the capacity of army to purchase any new toys in the name of security. I nominate SCP for the Ig Nobel..
At last some relief of common man,with the decrease in price of CNG the fares will cut off hugely the prices came down.so those who are criticise this or CJ, i think they don't care what the situataion of the peoples are or they have bulk of money in their pocket. i want to ask those peoples what zardari govt gives to Pakistan,just give one name!!!!!! DEMOCRACY IS AGAINST ISLAM in which the vote of PHD or Scholer man is equal to Vote of a shopkeeper.i cant believe this>.
Some relief for common man.
Yes, this decision would provide a temporary relief to the general public but this decision would only prove to be beneficial in the short-run. Brace yourselves for gas shortages, industry closures, deteriorating economy and unemployment in the near future.
I ask all those who have expressed their concerns against this courts decision, what has you very own democratic govt doing for the last 4 years?
CJ wants millions per month plus hefty perks and privileges, and a brand new Mercedes. In addition to a huge entourage of security personnel similar to the President, Prime Minister and COAS, At the same time, his SC asks for 30% increase in annual budget, which is not audited. On the other hand, the rich don't pay any taxes. Due to terrorism, instability, and uncertainty, no one wants to invest in the country. Bottom line is the country is not economically viable. Only option left is to print money, in which case everything will become expensive. And CNG price will automatically go back to Rs90. This is simple math.
@ All of you , please keep 3 things in mind :
1st Prices of CNG has nothing to do with international market, as we have our natrual source of gas. So linking it with international prices/ with dollar raise is baseless. 2nd remarks are against a petition, so SC have all rights to question the concern authorities. 3rd and very important point, if you guys say that it is not the responsibility of CJ to take notice than it is govt. duty to take notice. We have our Democratic govt 4.5 years in front of us, so appreciate if CJ is taking measures for a COMMON MAN like us !!1
Please some one tell sc that they don't know about economics. Here in Netherlands price fluctuates daily, depending upon international market.
And in typical use Pakistani Common Sense, we are first in line to criticise the SC just to feel important as if we are all suddenly experts in what SC should and should not do. The way I see it, common man gets relief,.. end of story.
So now the PCO SC are experts on pricing fossil fuels as well? Why keep the facade of a federal government? Chaudhury and his merry men should just try to run the country all by themselves. But then who will handle the tens of thousands of actual judicial review cases backed up at the SC.... oops!
Good news !!
@Mard-e-Haq:
read the whole news...Ogra secretary has confessed that as per ogra mandate, prices can only be revised twice a year only.Please apprreciate that since the govt is not interested in general for peoples welfare SC has to take notice...that is the responsibility of the judiciary as per constitution.Instead of appreciating SC action, question the management of the govt ? SC is right to point out how come CNG is linked to dollar & therefore petrol...? people who do not seem to be affected will question judiciary role in such issues related to general public..
Allah bless Justice Iftikhar Sahib. What is use of this so called government and democracy if everything is to be done by courts. Shame for present federal government.
Supreme court is now our oil experts as well!!
This is ridiculous? Are the SC judges not experts in economics, energy pricing, gas production and supply, and industry regulation? This is exactly what they did a couple of years ago to control sugar prices and that lead to a total mess. This is just a populist stunt and nothing else. Pakistan, prepare for more gas shortages!
Important information for SC. The most of the fuel purchased from Iran, Saudia don't incurre overhead charges. OGRA include all fuel purchased at par with brent oil and other fuel providers prices.
thank you SC.. we all love you
Ever since govt. linked CNG prices with petroleum products, prices rose to 30-40%. Will CNG's prices will down down to 60-65 Rs/ kg??
Is the Supreme Court running the country via legal rulings and suo motu these days? What's the use of the President and Prime Minister then?
Yet judiciary will be bashed as interference in govt affairs..? Is this order not in public interest ?