CNG case verdict: OGRA ordered to devise ‘consumer-friendly’ pricing formula

Court says current pricing to stay until new formula devised; deem Ogra a ‘failure’ in protecting consumers.


Web Desk December 21, 2012

ISLAMABAD: The Supreme Court threw Ogra’s CNG pricing formula out the window and directed the authority to formulate a new one while keeping the consumers’ interests in mind, Express News reported on Friday.

After two months of hearings in the Supreme Court, a short order pertaining to the CNG prices case,  was read out today by the bench headed by Justice Jawwad S Khawaja.

The court ordered Ogra to devise a new CNG pricing formula and directed the current prices to remain in effect till a new formula is crafted.

According to the short order, Ogra is responsible for formulating prices and CNG cannot be sold at rates higher than those devised by the authority.

While Ogra ought to keep in consideration the governmental guidelines, it is not bound to comply to them strictly since it is a sovereign authority.

The court deemed Ogra a ‘failure’ in protecting the consumers’ rights and said that a mafia had been formed comprising the government, CNG station owners and Ogra, which resulted in an unfair burden on the people’s pockets.

Speaking to the media outside the court, Chairman Ogra Dr Saeed Ahmed said new prices would be announced within 24 to 48 hours.

COMMENTS (8)

Pakivirus | 9 years ago | Reply

@ZA: ANd what about thos who have pre 2000 1500cc cars..Its not just that your mehran,,or mira should enjoy the luxury of getting CNG..It should either be banned for pvt vehicles or vice versa.

ZA | 9 years ago | Reply

Why don't they just ban CNG and allow it to be used in public transport and only 800cc cars. We are wasting a precious natural resource like anything. Gas is not available in homes yet we are still willing to give CNG.

Instead of focusing this much on the issue why not take action and ask the provincial governments to improve their public transport systems.

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