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Thursday, October 22, 2009, Zhul-Q'ada 02, 1430

SC calls for comparative petroleum price menu

Chief Reporter

Islamabad—The Supreme Court sought a comparative report from the government regarding pricing mechanisms for petroleum products in the international local markets.

A three-member bench of the apex court headed by Chief Justice Iftikhar Mohammad Chaudhry comprising Justice Ghulam Rabbani and Justice Jawwad S Khwaja heard two identical petitions of PML-N leader Zafar Iqbal Jhagra and PPP leader Rukhsana Zuberi against the “unjust” increase in petroleum prices and adjourned the case till October 29. Acting Attorney General Shah Khawar and counsel for Zafar Iqbal Jhagra, Ikram Chaudhry, appeared before the court while oil companies were represented by their counsel Khalid Anwar.

The court asked Secretary Petroleum to place an explanation before the court by next date of hearing regarding the pricing mechanism. During the course of the proceedings, the Chief Justice also sought explanation of the formula determined by the Oil and Gas Regulatory Authority (OGRA) about pricing mechanism of petroleum products.

The Chief Justice observed that there was no justification to increase prices of petroleum products when its prices were on decline in the international market.

Under which principle billions of rupees in taxes are being received on petroleum products,” he said. He said it is correct that the governments cannot run without imposing taxes but “imposing so many taxes on one product is unjustified.” The Chief Justice said that three months had passed but the Bhagwandas Commission Report has not so far been submitted before the Cabinet.

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