The Supreme Court Wednesday issued notices to the federal government, the Oil and Gas Regulatory Authority (Ogra) and other stakeholders to file statement showing the justification of fixation of petrol and gas prices. A three-judge bench, headed by Chief Justice Mian Saqib Nisar, was hearing a suo motu regarding high prices of gas, oil and petroleum products.
Khawaja Azhar Rasheed, appearing on behalf of OGRA, informed that fixing of oil and gas prices are determined by the government, while the regulatory authority only notifies it. The court observed that oil price fluctuates in the international markets. Justice Ijazul Ahsan asked when the oil price goes down from $100 per barrel to $50 per barrel then its benefit is not transferred to the consumers. The court noted that 25 per cent taxes are collected on petrol.
The Chief Justice said they need complete chart showing each component; what is the oil cost, refinery price and dealers margin, etc.
Deputy Attorney General Mirza Nasar Ahmed, representing the Ministry of Energy, explained that the apex court in Zafar Iqbal Jhagra case had decided the system of oil pricing and the same system exists now. "We have the lowest petrol price in the region despite taxation." In India the taxes on petrol are very high, he added.
The Chief Justice asked him to tell in how many areas Pakistan is better than India. "What is Pakistan's growth in information and technology sector? Don't compare with India in everything," the CJP said.
The DAG explained that refinery price is Rs 54.5 and customs duty is Rs 2.21. He added there are charges including inland freight, petroleum levy, oil marketing companies' margin, and the margin of dealers at pump stations. Customs duty is charged under Petroleum Levy Ordinance 1961, he said. The Chief Justice inquired him about the oil drilled locally. The DAG told that the government does not base pricing on crude oil but on import product.
The Chief Justice said it has come to their knowledge that Dhaka Funds are also levied on the petrol and they would get it forensic audit. The AAG replied it is not true and there are no Dhaka Funds on petrol. The case was adjourned for one week.