LAHORE – The Lahore High Court on Thursday restrained the Oil and Gas Regulatory Authority and Ministry of Petroleum and Natural Resources from pursuing any coercive action against LPG marketing companies under the controversial LPG Production and Distribution Policy, 2011.
As many as 20 LPG marketing companies along with the LPG Association of Pakistan (LPGAP) had moved the Court through Barrister Aitzaz Ahsan to challenge the provisions in the contentious Policy, which they allege, has received a lot of flak from the LPG and public sector. The Policy, which was made in secrecy without stakeholder inputs, makes it mandatory on LPG marketing companies to purchase 20 percent of their supplies from LPG importers and brokers, imposes a Petroleum Development Levy on local LPG production to make LPG imports viable, and gives monopoly rights over the LPG sector to public sector companies. The impugned levy, they petitioners said, would raise the market price of the LPG to make the public suffer. The Court after hearing the petitioners counsel at the preliminary stage, restrained OGRA and the Ministry from taking any ‘coercive action’ against LPG marketing companies as well as prohibiting Ogra from notifying a higher price of LPG to match with international prices, till the next date of hearing which is fixed for Oct 5.
“This is good news for LPG consumers nationwide,” said LPGAP Spokesman Bilal Jabbar. “The Policy has been formulated with designs to bankrupt and bleed the private sector, restrict competition, and create a public sector monopoly paid for by LPG consumers.” Jabbar said LPGAP had no choice but to approach the Court since all requests for meetings with OGRA and the Ministry were declined. “We are also dismayed that the autonomy of the regulatory authority, OGRA, has been severely compromised. None of this augurs well for the sector.”
The Nation -------- Sep 30,2011)
The Nation -------- Sep 30,2011)