Artificial fuel shortage: LHC orders govt to recover undue gains from OMCs

LAHORE: The Lahore High Court on Friday directed the federal government to take steps for the recovery of illegal gains the Oil Marketing Companies (OMCs) made by creating an artificial shortage during 2020.

Announcing a judgement in several public interest petitions, Chief Justice Muhammad Qasim Khan ordered the government to form a committee for the recovery of unlawful gains from the OMCs.

The government was also directed to take steps for the audit of all OMCs, and in the light of such audit report if required, a committee or subcommittee shall be constituted to examine the existing rules and regulations which, given the facts and circumstances, may propose amendments or new legislation.

The judgement said the federal government must complete legal action against those found responsible for creating the artificial shortage.

It also directed the government to ensure that strategic storage was preserved in all eventualities.

In this case, the government on July 28, 2020 constituted a commission which conducted a probe while taking all stakeholders on board.

The verdict directed the federal government to ensure the release of the report of the commission immediately. The government was directed to submit a compliance report within three months to LHC's additional registrar (judicial).

The chief justice ordered the chief secretaries of the respective provincial governments to take effective steps to empower the district administration to deal with such a situation.