SC seeks NAB report on petrol prices: Petitions against OGRA and OCAC
By Our Staff Reporter
ISLAMABAD, May 23: The Supreme Court on Tuesday ordered the National Accountability Bureau (NAB) to submit its findings on profits earned by refineries and oil marketing companies despite reduction of prices in the international market.
“The NAB prosecutor general is directed to come and inform the court about its inquiry report if compiled on profits earned by refineries and oil marketing companies,” a three-member bench comprising Chief Justice Iftikhar Mohammad Chaudhry, Justice Abdul Hameed Dogar and Justice Saiyed Saeed Ashhad said.
Reportedly NAB is probing into the matter and has asked the government to recover Rs4.5 billion from refineries and marketing companies for not passing on the benefit of international price reduction to consumers for nine fortnights since May 2004.
The bench was hearing a joint petition filed by three petitioners — Awami Himayat Tehrik Pakistan chairman Maulvi Iqbal Haider, PPP Senator Rukhsana Zuberi and PML-N Secretary-General Zafar Iqbal Jhagra — challenging the oil pricing mechanism.
Before adjourning the hearing for a week commencing from June 19, the bench also made it clear that it would not grant further adjournments.
Senator Zuberi also filed an additional document by annexing NAB’s preliminary inquiry report on the oil pricing affairs. She, however, told the court that the report suggested no remedial action against oil companies.
Advocate Sibtain Fazli, the counsel of now defunct nine-member Oil Companies Advisory Committee (OCAC), said he had already filed oil companies’ reply to the petitions.
However, PML-N counsel advocate Mohammad Ikram Chaudhry complained that he had not yet received replies of the Oil and Gas Regulatory Authority (OGRA) and the ministry of petroleum and natural resources.
The federal government and OGRA representatives requested for time to engage counsel and filed replies on the petitions.
The bench before adjourning the matter directed the parties to exchange pleadings in advance, engage counsel and come prepared next time without asking for further adjournment.
During the hearing, the court observed that it would not go into matters relating to the loss occurred for which a proper suit should be filed.
In his petition, Iqbal Haider had sought a declaration from the apex court that Section 2 (4b) of the Petroleum Products (Petroleum Development Levy) Ordinance 1961 was violative of articles 90 (exercise of executive authority of the federation), 8 (laws inconsistent with or in derogation of fundamental rights to be void) and 9 (security of person) of the Constitution.
The federal government, ministry of petroleum secretary, OGRA and OCAC chairmen, Attock Petroleum Limited chief executive Shoaib Malik, Caltex Oil (Pakistan) Ltd country representative Nadeem Jaffery, Pakistan State Oil Co. Ltd managing director Tariq Kirmani, Shell Pakistan Ltd chairman Farooq Rehmatullah, Total Parco Pakistan Ltd chief executive Emmanuel Laurenty, National Refinery Ltd managing director M. Qaiser Jamal, Pak-Arab Refinery Ltd managing director Dr Shahid K. Hak and Pakistan Refinery chief executive Zafar Haleem are respondents in the petition.
He has also asked the court to obligate the petroleum ministry to reduce petroleum prices as per resolution passed by the provincial assemblies of the NWFP and Balochistan. The federal government is bound to respect the resolutions by placing a bill in parliament under Article 144 of the Constitution.
Senator Zuberi has questioned delegation of powers to OCAC secretary and oil pricing mechanism contenting that the formula was in derogation of fundamental rights of the people.
Mr Jhagra has sought reduction in the ‘artificial’ prices of petroleum products and a restraining order against OCAC from further increasing prices pending decision in the apex court.
He has also requested the court to pass an order requiring return of the profit earned by all the oil companies and extra duties levied by the government from July 2001 till pendency of the petition.
