Load-shedding case: SC seeks report on ending subsidies

Orders fertiliser makers to submit rate chart of gas subsidies.

ISLAMABAD:

The Supreme Court has asked the government to submit a report on the withdrawal of subsidies on power tariff.

The apex court also asked Engo Fertilizer Company to submit a report in all the four provinces and ordered Fauji Fertilizer Company to share the chart of the rates at which it acquires subsidised gas.

A three-judge bench headed by Chief Justice Iftikhar Muhammad Chaudhry was hearing the suo motu case on load-shedding.

The issue of power shortage has led the court to a gas supply tussle between power producers, fertiliser makers, CNG sector and domestic users.

When the subsidised gas supply to fertiliser makers was discussed, the price of fertiliser also came under the radar during the course of the hearing.



The chief justice said that there should be a code of conduct for the determination of the prices of any commodity in the market. “It is the responsibility of the fertiliser companies to bind the wholesale dealers of fertiliser to charge the appropriate profit on the control rate list,” said the chief justice.

On withdrawal of power subsidies to domestic users, the country’s top judge told Nepra to provide a detailed report to the court about the subsidies given to the people on the power prices and when these subsidies were withdrawn. The chief justice inquired from Nepra officials whether people were consulted while withdrawing the subsidies.

Justice Jawwad S Khawaja said that policies are framed keeping in view the fundamental rights and it is the responsibility of the apex court to see that if the policies are in violation of fundamental rights.

Advocate Faisal Naqvi, appearing on behalf of Engro Fertilizer Company, argued that fertiliser prices rise when it is imported to meet the local demand.

He contended that Sui Northern Gas Pipeline Limited supplies gas at a subsidised rate to fertiliser companies, enabling manufacturers to sell fertiliser at lower rates to farmers. In 2012-13, he said, fertiliser production was 1.4 million tonnes, but the present government has stopped gas supply.

Justice Jawwad remarked that the court concern was that when the government was selling a bag of fertiliser at Rs187 instead of Rs342 then whether or not its fruits were reaching farmers.

Faisal Naqvi argued that the fertiliser companies were facing two kinds of problems: first, huge fertiliser amounts were being smuggled to Afghanistan and second its hoarding had triggered price increases.

Published in The Express Tribune, November 13^th, 2013.