Ogra action: LHC rejects CNG stations’ plea for stay order

Station owners say ‘irrational’ price causing them huge losses.

LAHORE:

The Lahore High Court on Thursday denied instant relief to gas station owners against prospective punitive action by the Oil and Gas Regulatory Authority (Ogra) over the closure of filling stations after the slashing of the CNG price.

The Supreme Court ordered that the price of CNG be cut by some Rs30 per kg one month ago, following which several gas stations have undergone lengthy closures rather than sell at the low rate.

The station owners submitted through their counsel at the LHC on Thursday that the sale of CNG at the price fixed by Ogra was not feasible as it would cause a huge financial lose to the stations owners.

The counsel said Ogra and the Sui Northern Gas Pipeline (SNGPL) had been “harassing” the petitioners to sell the gas at the “irrational price”. He asked the court to restrain the respondents from taking coercive measures against the station owners.

Opposing the petitions, the SNGPL counsel submitted that the matter was sub judice before the Supreme Court.

He said the gas price was reduced on the order of the apex court, but the CNG station owners did not want to pass the benefit on to the masses.

He said the closure of the gas filling stations was illegal and immoral. After hearing both sides, Justice Ayesha A Malik dismissed the stay application of the petitioners and issued notices to respondents on the main petition for December 17.

Published in The Express Tribune, November 30^th, 2012.