P L D 2009 Supreme Court 363 (PLP)

We have heard learned counsel for the petitioner in Constitutional petition No.33 of 2005. He has put forward his view points elaborately. After hearing him, we consulted Mr. Khalid Anwar, Senior Advocate Supreme Court and other learned advocates appearing for respective respondents and suggested that in order to resolve the controversy in a befitting manner an exercise has to be undertaken starting from the date when OCAC was authorized to fix prices of oil and gas i.e. from 29th June, 2001 to 1st April, 2006 when its authority was given to OGRA, it would be appropriate to appoint a Judicial Commission headed by a Retired Judge of this Court, who after consulting all stake-holders including the consumers shall submit a comprehensive report in respect of the points referred to it and any other point which comes in its notice. They agreed for the appointment of Commission to do the needful.

2. In our opinion following questions are required to be considered and answered by the commission:-- (i) Whether procedure adopted by OCAC was transparent to fix the prices of petroleum products for period commencing from 29th June, 2001 to 1st April, 2006 in pursuance of section 8 of the Petroleum Products (Development Surcharge) Ordinance, 1961 as added on 29th June, 2001 by Ordinance No.XXVI of 2001', without joining consumers/stake-holders, if so, who had benefited from it and what is the quantum of money/profit earned by them? * Petroleum Products (Petroleum Development Levy) (Amendment) Ordinance, 2001. (ii) If the prices are to be fixed on higher side, in view of the price of the oil products in international market, then as to why the consumers were not allowed to enjoy the benefits of prices when it reduced in international market from June, 2001 to onward? (iii) Whether taxes levied by the Government of Pakistan during the period commencing from 29th June, 2001 to 1st April, 2006 and subsequent thereto, are reasonable? (iv) Whether Government can earn profit from the prices of oil besides receiving taxes and profit should not be passed on consumers, who are major stake-holders? (v) Whether in view of present reduced prices of oil products in the international market particularly in Gulf countries from where Pakistan is purchasing oil, the consumers are not entitled for its benefit? (vi) Whether the prices of gas products like CNG, LPG being local products have been arbitrarily increased from 29th June, 2001 and uptil now and what is its reason and effect? (vii) As to why Ministry of Oil & Gas has not corrected error when it announced increase of Rs.9 per kg gas but it was increased to Rs.13? (viii) Whether increase in prices of Kerosene Oil, consumed by those who have no facility of natural gas in the rural areas, has not effected their lives and what means are to be adopted to accommodate them? (ix) Whether the government i.e. Ministry of Petroleum and Ministry of Finance are not required to revise the policy of fixing the prices in a transparent manner for purpose of extending benefit to the commoner as prices of oil products have decreased in international market at a considerable rate. (x) Whether benefit was passed on to the consumers cut of oil gifted by friendly countries during the last few years. (xi) What are the recommendations of the Commission for fixing prices of oil, gas, CNG and LPG in a transport manner according to international market prices of oil etc., enabling general public/consumers/stake-holders to enjoy maximum benefits out of the same?

3. Mr. Justice (R) Rana Bhagwandas is appointed as a Commission. The Commission shall be free to have the services of M/s A.F. Ferguson & Co. Chartered Accountants for purpose of accounting etc. Similarly the Commission shall be free to hire services of an expert on the subject in matters relating to oil and gas. Respective parties shall give a panel of experts enabling the Commission to select the expert as fore noted. All the parties, present in the court, shall attend the proceedings before the Commission and Commission would also invite the consumers and to other stake-holders including transporters to appear before it for rendering assistance.

4. The Commission shall give findings on the above referred points, as well as on any other relating matter, if put up before it, within 30 days from the date when the Commission shall start functioning on receipt of this Reference.

5. Learned counsel for Oil companies, agreed that fee of the Commission be fixed as Rs. Ten Lacs, which shall be paid by the oil companies/respondents. Mr. Khalid Anwar, Senior Advocate Supreme Court shall make arrangements for making payment to Mr. Justice (R.) Rana Bhagwandas, as early as could be possible. So far as the fee of the Chartered Accountants and the Oil Expert is concerned, the Commission shall itself fix the same, which shall also be paid by the oil companies.

6. The Federal Government, Ministry of Oil and Gas shall make arrangements for boarding & lodging and travelling of the Commission according to the status of a Judge of Supreme Court from Karachi to Islamabad or to any other place in performing of its function. An officer shall also be appointed by it to facilitate the Commission including to provide venue for holding the proceedings of the Commission etc.

7. The Secretary, Ministry of Petroleum, Government of Pakistan to act as Secretary of the Commission for effective discharge of its functions and shall place all relevant documents before the Commission for achieving the objects. Similarly Ministry of Finance and Chairman FBR shall co-operate with the Commission. Adjourned to a date in office, to be fixed after receipt of the report from the Commission. M.B.A./Z-11/S Order accordingly.