HC Seeks Reply From Respondents In Oil Firms' Case

ISLAMABAD, (UrduPoint / Pakistan Point News - 29th july, 2016) : The Islamabad High Court (IHC) on Friday sought reply from respondents in a case pertaining to Oil and Gas Regulatory Authority (Ogra)'s notices to petroleum refining and marketing industry to immediately apply for fresh licences to continue their business or face punitive action. A single judge bench of Justice Gulhussan Aurangzaib sought para-wise comments before the next date of hearing from Ogra and the Secretary Ministry of Petroleum and Natural Resources. Five oil refineries, 13 oil marketing and one oil transportation companies had challenged OGRA's instructions to obtain licence under Rule-6 of the Pakistan Oil Rules 2016 within 90 days. The managements of leading refineries and marketing companies had been critical of these notices whereby the petitioners had been asked to obtain fresh license and pay requisite fee under Pakistan oil rules.

The petitioners have also challenged the vires of the rules. During the course of proceedings, the counsel for the petitioners pleaded that under Section 6 (2) (b) of Ogra ordinance's rules for regulation were to be framed by the authority in consultation with licensees.

He also contended that no consultation was made with them prior to framing the rules. Under the rules, he said all the oil refineries, marketing companies and oil pipeline companies are required to pay Rs 2 million non-refundable fee for grant, renewal, modification, extension, assignment, review, transfer, amendment, relocation or re-issuance of a licence. The petitioners are also required to pay 0.005pc of gross sales.

He has prayed the court to declare the notifications illegal, he added. Earlier, the petitioner obtained status quo on the matter from the IHC which was still maintained.