Expressing apprehension on the mechanism of petroleum import the Supreme Court on Sunday directed the Attorney General for Pakistan to get in touch with the oil experts and the chartered accountant for the audit of true and actual oil import price. The caretaker government on July 7 reduced per litre price of petrol by Rs 4.26, high speed diesel Rs 6.37, kerosene oil Rs 3.74 and light diesel oil by Rs 5.54.
Chief Justice Mian Saqib Nisar said the price of petroleum products reduced one day before the proceeding of the case is done due the Supreme Court''s pressure and not their own. He said the court does not interfere in the government''s affairs, but it should not do injustice with the citizens.
"My hunch is that there are loopholes in the import price of petroleum," said Chief Justice Mian Saqib Nisar. He was heading a three-judge bench, which heard suo moto on the oil price. "We also don''t see any formula or SOP by the FBR regarding fixation of taxes on petroleum," he said.
The bench also directed the federal government and the Federal Board of Revenue (FBR) to justify the sale and other taxes levied on the petroleum products. The court ordered Oil and Gas Regulatory Authority (OGRA) to satisfy about the out-sourcing the job of examining the quality and correct measurement at the petrol pumps and file a report in that regard in 10 days time.
The chief justice expressed concern over the MD PSO salary and perks and privileges, saying it is much higher even the salary of the chief secretary of a province. He said the government should not pass on non-development and non-productive costs to the masses.
He asked that there should be cut in commission and other expenses. The notion should be that the State rationalize oil pricing," adding if rationalization is not reasonable then the court could strike it down. "We want that the masses get cheap petrol," the chief justice said.
Earlier, Attorney General for Pakistan Khalid Jawed informed that 15 percent oil is produced locally, while 85 percent is imported in the shape of crude and the refine petroleum. There is inland freight (equalize the margin for transportation), custom duty, dealers margin, petroleum levy under the 1960 Ordinance on oil price.
He contended all these are in the hands of OGRA and the federal government for the determination of the petroleum price, adding when oil price goes up internationally then the tax on it goes down, but when the price of oil internationally is low then the taxes on it are high. Justice Ijaz remarked that it is for the uniformity in the oil price.
Managing Director PSO Sheikh Imran ul Haque explained that petroleum import is done through tender and it is on the spot bidding, adding the bidding is done in accordance of Public Procurement Regulatory Authority rules. The chief justice inquired from the PSO MD how much money is paid or taken as commission. He replied tender is floated internationally and the award is given to the lowest bidder.
OGRA chairman Uzma Adil explained that the petroleum price is determined after examining the import price and other factors, but the final decision is made by the federal government and the OGRA only notifies the prices. The case is adjourned until 14th July.