CNG concerns

Recent SC move leaves open the question whether it is encroaching on the domain of policymaking.

The Supreme Court’s decision on October 25 on compressed natural gas, ordering the Oil and Gas Regulatory Authority to lower prices by Rs30 per kilogramme and de-link it to any increase in petroleum rates and also nullifying the operating cost per kilogramme of CNG stations, has obviously been welcomed with delight by people, given the burden of price rises which lies on their shoulders. It falls as such on the list of other populist decisions made by the apex court — offering relief to people on various matters. But while no one would wish to deny these people help, the fact also is that such micro-management by the judiciary makes the task of the executive harder. The strategy related to raising the price of CNG in graduated steps was aimed at reflecting the scarcity of a dwindling resource and also cutting back on its use as a fuel so that it could be reserved for industrial use. This made good economic sense, and obviously fell in line with broader national policy. The SC decision takes a far narrower look at the situation, and ignores these factors. In the longer run it could add to the national problems we face.

This is of course why institutions are separated within constitutions; why they work within differently, clearly demarcated sectors. When these lines of operation become blurred — more complications arise, as would be the case at any corporation, factory or other organization. This is something to keep in mind. The government of course needs to focus on the economy as a whole, make wide-ranging decisions that see the entire spectrum of national life spread out before it and not make piece-meal moves. Interventions in this process from other quarters simply complicate its task. The CNG policy has been flawed for some time; perhaps insufficient thought was given to the future when the decision to promote it in vehicles on a mass scale was made in the mid 2000s. The recent SC move has put smiles on faces for now — but what it will achieve in the long run, or if it will impede the complex task of managing energy resources, is something that will need to be seen. Besides, it leaves open the question of whether the court is encroaching on the domain of policymaking that is better left to the executive.

Published in The Express Tribune, October 27^th, 2012.