The Supreme Court on Thursday stayed the prevailing price of Compressed Natural Gas (CNG) till November 19 and observed that determining prices of petroleum products was Oil and Gas Regulatory Authority''s (Ogra) sole preserve.
The Chief Justice refuted criticism by some Bar members that it was not the judiciary''s job to determine the prices of petroleum products, adding that they should read the 26th October court order relating to reducing oil prices by Rs 30.90 in region I and Rs 30.38 in region II prior to making comments.
A two-judge bench of Chief Justice Iftikhar Muhammad Chaudhry and Justice Jawwad S Khawaja issued the directives to Chairman Ogra while hearing identical petitions on petroleum prices. The bench sought a comprehensive report on gas consumed by domestic consumers, industries, IPPs, CNG stations and fertiliser sector from Secretary Petroleum and Chairman Ogra.
Directing the managing directors of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipeline Limited (SNGPL) to submit a report on measures taken to control Unaccounted-For-Gas (UFG) losses the bench observed that some mechanism had to be followed to control pilferage as losses were being borne by consumers. The MDs of SSGCL and SNGPL were given 15 days to carry out a forensic audit of CNG price per kilogram/mmbtu and submit details pertaining to current gas production and consumption as well as the estimated shortfall on the next date of hearing. The MDs of the companies informed the court that Ogra fixed per kilogram price of gas in SSGNPL at Rs 18.04 and Rs 16.48 in SNGPL on October 26, 2012.
The Chief Justice observed: "It is important to understand the cost these companies have to bear to supply gas to CNG stations". Taking notice of Dr Asim Hussain''s (Advisor to Prime Minister on Petroleum and Natural Resources) statement that ''petroleum mafia'' had delayed the implementation of the LPG policy, the bench asked Federal Secretary Petroleum to submit a report on the matter on the next hearing.
During the course of hearing, Secretary Petroleum apprised the bench that adjudication relating to petroleum levy was pending in Lahore High Court (LHC) where the court had issued stay order a year ago. The court directed him to seek an early hearing on the matter from the relevant court. During the hearing, Salman Akram Raja represented Ogra, Abdul Hafeez Pirzada represented CNG Association and Waseem Sajjad appeared before the bench on behalf of Sindh CNG Association. Abdul Hafeez Pirzada requested two weeks to file a response in the instant matter.
Justice Khawaja observed that CNG Association had become a cartel and the government had signed agreements with that cartel "which implies that the government is complicit in the cartel''s creation." The Chief Justice stated that the instant matter involved rights and interests of millions and it was OGRA''s primary duty to ensure consumer rights whereas Petroleum Ministry should take basic constitutional rights into account. The bench observed that Ogra as a watchdog should observe the provisions of its own laws in order to ensure consumer rights. Later, the bench adjourned the hearing of case till November 19.
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