Supreme Court bars OGRA to increase CNG prices until next hearing

The Supreme Court on Thursday ordered Oil and Gas Regulatory Authority (OGRA) to maintain the current prices of CNG until the next hearing of the case pertaining prices of petroleum products.

A two-member bench of the apex court headed by Chief Justice Iftikhar Mohammad Chaudhary resumed the hearing of the case in which the OGRA chairman presented the new formula for determination of prices of CNG before the bench.

Chief Justice Iftikhar Muhammad Chaudhary during the hearing remarked that the court had not conducted an assessment of CNG prices and had left the matter to the Oil & Gas Regulation Authority.

OGRA recommended ending the operating costs in order to collect Rs 5.75 towards production costs. It also proposed lowering the CNG station owners’ profits per kilogram from Rs 11.20 to Rs 2.95.

During the hearing, Justice Jawad S. Khwaja remarked that the CNG Association was a cartel and it appeared as if it had been formed by the government.

He said that the actual price of CNG was far less than it was at present. It was OGRA’s duty to protect the rights of the consumers, he added.

The court moreover accepted the applications filed by the CNG Association and station owners to become parties in the case.

Previously, the Supreme Court had ordered that CNG prices be decreased by Rs 30 over the Eidul Azha holidays as an “Eid gift” to the consumers.

The CJ also took notice of Dr Asim Hussain’s interview to private television and summoned the secretary petroleum immediately.

In a television interview, Dr Asim had said that a mafia was hindering the resolution of the petrol price case.

The chief justice expressed his displeasure at the statement and said there was no concept of mafia in the court. The mafia mentioned by Dr Asim was a big challenge as well as a surprise to the court, he added.

Later, the court adjourned the hearing of the case till November 19 after Hafeez Pirzada, the counsel of the association, sought two weeks time to submit their reply.

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Posted by Faisal Farooq on Nov 1 2012. Filed under Latest News, National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.