LAHORE:The Lahore High Court (LHC) on Friday ordered the federal government to initiate legal action against those responsible for creating the petrol shortage 2020.
The court ordered the federal government to form a committee for recovery of amounts gained by the oil marketing companies (OMCs) unlawfully during the petroleum products crisis.
LHC Chief Justice Muhammad Qasim Khan passed the orders while announcing verdict on petitions filed against the petroleum crisis 2020. The court had reserved the verdict after hearing arguments of the parties.
In its detailed judgement, the chief justice asked the federal government to take steps for the audit of the OMCs. If required, in the light of audit reports, a committee should be constituted to examine the existing rules and regulations, and it might propose amendments or new regulations, the LHC CJ added.
The chief justice directed the federal government to ensure that strategic storage was preserved in all eventualities. He asked the federal government to ensure release of the Inquiry Commission report about the petroleum products’ artificial shortage and make arrangements for implementation of its recommendations.
The chief justice asked the federal government to submit a compliance report within three months with regard to the steps taken by it.
The government should examine the report of the Inquiry Commission about dissolution of OGRA [Oil and Gas Regulatory Authority] through a high powered committee; however, if such a committee concludes that the authority should remain intact, then the rules relating thereto must be revisited immediately and fresh rules/ regulations should be framed, and the authorities should closely watch the working of OGRA and other autonomous bodies. In case of any lapse, the officers/ officials concerned must be taken to task, he added.
The chief justice noted that the oil and gas sector was pivotal and it had strong impact on the economy of any country. He noted that the petrol crisis developed over a period of time, and witnessed a relatively poor action from the authorities concerned.
After decline in petrol prices and low consumption due to coronavirus in the start of 2020, the chief justice observed that the wheat harvest was just round the corner when local refineries started to close down for limited offtake by the OMCs. “It was quite clear by the end of March that OMCs were not maintaining mandatory stocks for the 20 days’ consumption cover as per the rules and licence-conditions. Unfortunately, even the strategic reserves had already been compromised. The supply chain disruption was nationwide and affected all major cities and towns in Punjab, Balochistan, Azad Jammu and Kashmir, as well as Gilgit-Baltistan, he regretted.
The chief justice remarked that during the period, OGRA, the Petroleum Division and the oil industry were making friendly communications limited to file work.
It becomes evident through perusal of the available material that despite foreseeing crisis in the making, no effort whatsoever was made to take decisive steps to nip the evil in the bud, he added.
The chief justice noted that after the court intervention, the federal government constituted an Inquiry Commission, which made an indiscreet probe and submitted its recommendations. He noted that in the light of the recommendations, the directions were being issued so that future incidents of like nature might be eluded.
Muhammad Shabir Hussain and others had filed the petitions seeking issuance of appropriate orders about the acute petrol shortage and unreasonable price hike of petroleum products in the first and second quarters of the year 2020. The petitioners had asked the court to issue directions for smooth supply of the petroleum products and the price hike by the companies for undue advantage from the dreadful situation might be declared unlawful and illegal.