ISLAMABAD: The government informed the Supreme Court on Tuesday that a committee has been constituted to examine and review the oil refineries pricing formula in the light of recommendations of the judicial commission on oil and gas prices.
A judicial commission, headed by Justice (retd) Rana Bhagwandas on oil pricing system, in its report had revealed that the government’s revenue from the oil sector crossed one trillion rupees between 2001 and 2008, with the net profit of just one oil refinery rising by 3,516 per cent during the period 2007-08 compared to 2001-02.
It had observed that the oil marketing companies and refineries at times made windfall profits from their businesses, highlighting that many a time companies had made excessive profits on their inventories by reason of increase in international and local market.
The commission, in its 74-page report, revealed that after the Pakistan Refinery Ltd, which recorded the largest profit, came Attock Petroleum Ltd with its profit rising by 1,398 per cent during 2007-08, Shell Pakistan Ltd by 483 per cent, Pakistan State Oil Ltd by 440 per cent and Chevron Pakistan Ltd (formerly Caltex) by 170 per cent.
Among the refineries, the commission stated that Attock Refinery Ltd increased its profit by 830 per cent, National Oil Refinery Ltd by 768 per cent and Pak Arab Refinery Ltd by 567 per cent.
On Tuesday, a three-member bench of the Supreme Court comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Mian Shakirullah Jan and Justice Zia Pervez was hearing a case of overcharging on petroleum products.
Acting Attorney General Shah Khawar told the court that in pursuance of the apex court judicial commission report on oil and gas, the minister for petroleum and natural resources has constituted a committee under the chairmanship of secretary petroleum and natural resources to examine and review the refineries’ pricing formula in the light of recommendations of the judicial commission appointed by the Supreme Court on oil and gas pricing.
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