Staff Report
ISLAMABAD:
The Oil and Gas Regulatory Authority (OGRA) is expected to apprise the Islamabad High Court (IHC) regarding ban on development of new retail outlets and maintaining 20 days minimum stocks of petroleum products by Oil Marketing Companies (OMCs).
According to sources, IHC is scheduled to conduct next hearing on OMCs case under which the OMCs have been challenging the ban on development of new retail outlets and maintaining 20 days minimum stocks of petroleum products on 29 July 2021. And, OGRA is expected to apprise the court, particularly, on the federal cabinet’s approval specifying in writing to maintain 20 days minimum stocks of petroleum products, and ban on development of new retail outlets.
As per details, hearing of the OMCs case regarding challenging ban on retail outlets for not maintaining 20 days minimum stocks of petroleum products was held in IHC on Thursday.
During the hearing of OMCs case, the OMCs lawyers Ali Sibtain Fazli, Haroon Dugal, Waheed Alam, Shahrukh and Ms. Sara Seerat argued that Rule 37 of the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016 (“Rules 2016”) may requires that every oil marketing company shall maintain such minimum stocks of petroleum products as the Federal Government may, from time to time, by order in writing specify. However:
As required under the Rules 2016, the Federal Government has not specified in writing maintaining of product wise/ province wise, minimum stocks of petroleum products;
There exists no policy of Federal Government which bans development of new retail outlets (which indeed build their required licensed storages);
OGRA did not consider OMCs main storages/ hospitality storages/ terminal linked with country’s pipeline systems, and retail outlet own storages;
The Constitution of the Islamic Republic of Pakistan guarantees fundamental right of freedom of trade, business or profession;
In the light of Supreme Court judgment (Mustafa Impex case), Federal Government means ‘Cabinet’ and even the Prime Minister executes policy decisions, but does not take them by himself;
Without consulting and obtaining approval from the Cabinet, even the Prime Minister cannot move any legislation; therefore, any action by OGRA that does not conform to the referred judgment is susceptible to a challenge issued upon its validity. Therefore, OGRA’s directives enforcing a ban on development of new retail outlets, under the garb of Federal Government policy, is void ab initio, OMCs lawyers informed the IHC.
