ISLAMABAD: The Supreme Court on Monday sought a report from the Ministry of Petroleum and Natural Resources on the price charged for CNG as well as subsidy extended to domestic and industrial gas consumers for the past ten years. The court also directed the Ministry to submit the most recent Economic Co-ordination Committee (ECC) decision relating to guidelines for the CNG pricing formula by the next date of hearing.
A two-judge bench of Justices Jawwad S Khawaja and Khilji Arif Hussain reiterated that the Supreme Court had nothing to do with fixing CNG price or determining the pricing formula because it was a prerogative of the government. Justice Khawaja added that the bench was not representing any party's interest in the instant matter and made it clear that the court would intervene in case the fundamental rights of the people were violated through windfall profits.
Salman Akram Raja, the counsel for Oil and Gas Regulatory Authority (Ogra), apprised the bench that the pricing formula determined in meetings between Ogra and the CNG association/station owners would be presented in the federal cabinet on Tuesday (today). He further revealed that Ogra had recommended a Rs 73.96 per kg price for Region I and a Rs 65.50 price for Region II.
"We have to fix responsibility in the instant matter so there is a need to understand the underlying principle behind the CNG proposed price in Region I and II," Justice Khawaja observed. The counsel further contended that the domestic and fertiliser sectors were being subsidised and the resulting burden was passed onto other sectors with the objective of reducing the cost of fertilizer to benefit farmers. He further argued that cross subsidies determined price and added that Ogra had rationalised excessive margin to CNG stations in pursuance of court's orders.
Justice Khawaja recalled that the court had directed Ogra to fix CNG price while taking into account the interests of all the stakeholders. Raja contended that due to absence of Dr Asim Hussain, Advisor on Petroleum to the Prime Minister, in the ECC meeting held earlier, the issue of gas pricing remained unresolved.
Wasim Sajjad, the counsel for some CNG station owners, pleaded that his clients were facing financial hardship as a consequence of current CNG price and prayed to the court to deliver a clear-cut decision on CNG pricing. Abid Hassan Minto, the counsel for the MDs of Sui Northern and Southern Gas Pipelines, submitted that the Lahore High Court had reserved judgement on the reasons for the high UFG losses and prayed to the bench to examine these reasons during the course of hearing.
Justice Khawaja responded that the court would take an appropriate decision after it received the required information from Ministry of Petroleum and Ogra; and directed Chairman CNG Association Ghiyas Paracha to submit a detailed audit of CNG stations accounts to Ogra before the next date of hearing. The court, however, reserved the right to depute an expert to evaluate the accounts of CNG stations submitted to Ogra or the government. The hearing was adjourned till 20th December.
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