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Wednesday November 27, 2024

SHC seeks comments from Ogra, Petroleum Division on price hike

By Our Correspondent
May 31, 2019

The Sindh High Court (SHC) on Thursday directed the Ministry of Energy (Petroleum Division), the Oil & Gas Regulatory Authority (Ogra) and others to file comments on a petition against the recent increase in the prices of petroleum products.

Petitioner Maulvi Iqbal Haider said in his application that the federal government had increased the prices of petroleum products by 9.42 per cent in the current month despite an increase of 6.4 per cent only two months earlier, which was an unlawful move and in violation of various articles of the constitution.

He said that the increase in the prices of petroleum products was an unjust decision, as the government had already increased the general sales tax on all petroleum products to the standard rate of 17 per cent across the board to generate additional revenue.

He added that the government was the competent authority to impose taxes on the general public but only subject to the approval of the parliament by way of an act of the parliament, which annually provided the budget, but in violation of the scheme of the constitution, the government submitted a mini-budget in March and imposed taxes on the people.

Haider said that all the necessary items with regard to life of the common people automatically increased due to the unjustified increase in the prices of petroleum products, adding that the people belonging to the lower-income group had to endure the inflation.

He requested that the court declare the increase in the prices of all petroleum products by 9.42 per cent and the imposition of tax on the increase as unjust and unlawful, as well as direct the government to recall the notification with regard to the increase in the prices of petroleum products. He also sought an injunction against the increase in the prices of petroleum products.

The SHC’s division bench headed by Justice Mohammad Ali Mazhar took exception to the federal law officer not filing comments on the matter, and directed the Petroleum Division, Ogra and others to file their comments by June 14.

The court warned the respondents that the case will be heard and decided if their comments were not filed on the next date of hearing.