Supreme Court dismisses OGRA’s CNG pricing formula

The Supreme Court on Friday announced its verdict on the case related to the pricing of Compressed Natural Gas (CNG) and declared the pricing formula prepared by the Oil and Gas Regulatory Authority (OGRA) as void.

A two-member bench of the apex court, comprising Justice Jawad S Khawaj and Justice Khilji Arif Hussain, ordered it to set new formula for the CNG prices. The bench reserved the verdict after hearing concerned the parties.

The court remarked that the OGRA was bound to protect the consumers’ rights but the statistics showed the CNG price had been increased by 300 percent since 2008. The SC also ordered the authority to follow the instructions of the government to set the prices.

The verdict further said that OGRA is independent of the federal government and is responsible for protecti0n of consumers and for setting the price of CNG. The court added in its verdict that monopolistic activity could not be allowed and that OGRA had violated rules and favored a few individuals.

The interim order stated that the price of CNG was not in accordance with the law. The SC also pointed out that the price of per kilo of CNG increased from Rs 33 in 2008 to Rs 95 in 2012, adding that pricing structure included exorbitant additional charges due to which millions of people were affected.

OGRA Chairman Saeed Ahmed Khan, while talking to reporters outside the SC after the judgment, said that the authority would try to form new formula within 48 hours.

Ghiyasudin Paracha, Chairman All Pakistan CNG Association (APCNGA), while talking to reporters outside the court had demanded the government to reduce the price of gas as well as tax besides increasing the pressure to gas stations and end load-shedding.

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Posted by Faisal Farooq on Dec 21 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.