SC stays CNG tariff until final decision

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The Supreme Court on Wednesday sought details from OGRA regarding the action taken each year against CNG stations for not complying with terms and conditions mentioned in licences, as it rejected a proposal to increase the CNG prices and stayed the prices at the current level. A two-member bench of Justice Jawwad S Khawaja and Justice Khilji Arif Hussain resumed hearing in the case regarding CNG prices.
In his remarks, Justice Khawaja said there was a cartel in the country and it appeared as if prices were fixed on its demands. He said business was done on basis of profit. “If it suits the businessmen, they must carry on, or else they should shut down the business.”
He added that the court wanted to scrutinise the issue per law and did not care whether CNG stations were closed or phased out. The bench directed OGRA to furnish the details of total number of applications received for setting up CNG Stations each year since 2002. The court also directed the Federal Board of Revenue (FBR) to submit the details the owners of CNG stations who filed their tax returns and the amount of taxes, if any, paid by them during the last three years. Rejecting CNG owners’ association plea to increase the CNG prices, the court observed that current prices would be maintained until the case was decided.
The court demanded from OGRA a list of the total number of applications rejected each year since 2002, total number of applicants allowed provisional licences each year, total number of marketing licences allowed each year, total number of stations actually set up each year that became operational and the total number of stations that provided audited accounts and income tax returns each year since 2002.
During the hearing, counsel for OGRA informed the bench that a very limited number of people had submitted their audited accounts to OGRA, while a vast majority had failed to do so despite demands. “The demand for audited accounts is supported prima facie, by the statute i.e. the OGRA Ordinance and the rules framed there under and under other statutes,” the court observed. The bench also said that reference was made to a report which had been prepared by a firm of accountants. The report, however, was incomplete as it did not taken into account the audited accounts of 3,395 CNG stations that were permitted to sell CNG. The proceedings were adjourned until today (Thursday) with directions to OGRA to submit the demanded details. Talking to reporters outside the SC, CNG Association Chairman Ghayyas Paracha said the court’s decision on the pricing formula would be accepted by the CNG dealers. The OGRA chief said the body had failed to reach a consensus with CNG dealers over the new pricing formula.

4 COMMENTS

  1. The SC has demanded of the OGRA a tall order that will keep the office open until the midnight oil is exhausted. Viva Supreme Court! You are the real leader of the country and have the welfare of the nation in your heart. Viva justices. Salams

  2. The only hope for the nation is Supreme Court.
    OGRA and CNG association seems to have some under hand deal that must be condemned and unacceptable.
    Although nation has to face some problem but in the long run it will be fruitful Inshalla.
    We all stand with Supreme Court.

  3. SC judges are not prepared to accept the CNG owners’ statement that they would be in loss with the new prices. Here is the simple solution – if the learned judges believe that there is still a tons of profit for the CNG owners why don’t they buy some of these stations and see how the figures stack up for them. I am sure the judges won’t be short of money to buy this investment.

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