The Supreme Court of Pakistan (SC) has rejected federation appeal challenging interim stay order given by Lahore High Court against LNG policy.
A three-member bench of SC headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Khilji Arif Hussian and Justice Tariq Pervaiz heard the federation appeal on Monday.
It is worth mentioning here that LHC has given interim stay order till November 22.
The CJ remarked that according to media reports the policy was made to benefit one person only and PEPRA rules have been violated.
Additional Attorney General said that due to the suspension of LNG policy, gas shortage would be faced in winter season, adding that the LHC stay order would create gas deficiency for domestic users.
CJ Iftikhar Chaudhry said that the LNG policy is likely to increase gas prices and burden the consumers. The SC ordered the federation to go back to LHC and rejected the petition.
The plea was moved by the Federation praying review of the LHC interim verdict over a policy devised by Government for importing LPG. The bench in its order said that the Federation might approach the LHC for raising similar contentions as a proper forum and after availing the remedy, it could move the apex Court.
It was observed that if a plea was moved by the Federation, the LHC might fix it for hearing within two-week time, adding that matter is under proceeding in LHC, so the intervention of SC would not be correct.
During the proceedings, the Additional Attorney General maintained that the LHC order over the LPG policy would further affect the issue of shortage of gas in the winter season.
He cautioned that if such a stay order remained in place, it would also disturb the supply process and even would not be available for a large section of domestic consumers.
The Chief Justice citing a press report of daily newspaper remarked that the whole policy was devised to benefit a particular party.
He said that in the report it was feared that the policy would surge gas prices and all burden would be passed on to the consumers. He further observed that newspapers reports claimed that the government had ignored the relevant PEPRA rules over LPG policy.
It is worth mentioning here that the Lahore High Court, on October 3rd, had suspended operation of the certain clauses of the new LPG (Production and Distribution) Policy 2011 and on October 6 further extended the stay period till November 22.
Justice Syed Mansoor Ali Shah of LHC through an interim order had suspended operation of the clauses 3.1, 3.4.1 and 3.4.2 of the impugned policy.
According to the petitioners, the suspended clauses of the new LPG policy was formulated by the Ministry of Petroleum and Natural Resources without taking any input from the actual stake-holders, gave monopoly rights to the public sector over Pakistan’s LPG sector, imposed a Petroleum Development Levy forcing a mandatory increase in local LPG producer prices, and obligated LPG marketing companies to purchase 20 per cent of their supplies from LPG importers and brokers.