Petroleum price hike: Sindh High Court puts OGRA, federation on notice

Petitioner claims price hike is illegal, appeals to court to restrain govt from price change.

KARACHI: The Oil and Gas Regulatory Authority (Ogra) and the deputy attorney-general (DAG) were put on notice for January 18 by a division bench of the Sindh High Court on Tuesday.

The bench, comprising Chief Justice Sarmad Jalal Osmany and Justice Munib Akhtar, were hearing the constitutional petition filed by Moulvi Iqbal Haider advocate, a lawyer who prays the court to declare the recent price hike in petroleum products illegal and without justification.

The petitioner submitted that the increase in petroleum prices should not be allowed unless approved by the National Assembly as it falls within the ambit of a ‘new tax’ or a federal levy. It is a money bill in essence and so it cannot be enforced unless it is approved by the elected houses, Haider maintained.

The petitioner, citing the federation of Pakistan, the Ministry of Petroleum and Ogra as respondents, prayed the court to direct the government to withdraw its notification of increasing the prices of petroleum products.

He also appealed to the court to direct Ogra to present its formula or criterion for price change before parliament and to implement the decision taken by the elected house.

Maintaining that the imposing general sales tax and other taxes on prices of petroleum products is in violation of Article 77 of the constitution, the petitioner appealed to the court to restrain the government from implementing new prices. After the hearing, the bench also referred to the recent political upheaval and strong reaction from the general public and issued pre-admission notices to Ogra and the DAG for January 18.

Notice issued to SSGC
managing director

The Sindh High Court (SHC) issued a notice to the Sui Southern Gas Company (SSGC) managing director on an application seeking contempt of court proceedings against him.

SITE Association of Trade and Industry had filed a petition against load-shedding being carried out by the Karachi Electric Supply Company (KESC) on the account of reduction in gas supply by SSGC.

The petitioner’s counsel Abid Zuberi had informed SHC that the issue of gas supply to KESC was resolved in the Cabinet Committee on Energy Crisis’ minutes of meeting, where it was agreed that SSGC would guarantee the availability of 276 MMCFD of gas daily to KESC. But SSGC failed to honour the commitment, he submitted.

On Tuesday, the petitioner’s counsel moved an application submitting that SHC twice directed SSGC to ensure the supply of 276 MMCFD gas to KESC. He contended that SSGC, violating court directions, had reduced gas supply to KESC because natural gas was illegally transferred to the Sui Northern Gas Company. The SHC division bench issued a notice to the alleged contemnor for January 11 and adjourned the hearing till then.

MQM tables motion
against price hike

Members of the Muttahida Qaumi Movement (MQM) tabled an adjournment motion on Tuesday in the Sindh Assembly against the increase in petroleum prices.

MPAs Khalid Ahmed, Adil Khan, Heer Ismail Soho, Aleemur Rehman, Tahir Qureshi and Shoaib Ibrahim submitted it to Assembly Secretary Hadi Bux Buriro.

The legislators said that the recent price hike is an attack on the lower middle class who cannot survive due to increasing prices.

They made an appeal to the speaker of Sindh Assembly to suspend other matters and resolve the issue immediately.

additional input from wire agencies

Published in The Express Tribune, January 5^th, 2011.