SHC seeks Centre’s comments on oil companies’ plea

The Sindh High Court (SHC) has directed a federal law officer to file comments with regard to issuance of show-cause notices to oil marketing companies for allegedly hoarding oil after reduction in prices of petroleum products last year.

The direction came recently on identical petitions filed by private oil marketing companies against raids and registration of FIRs against them and their employees on complaints of hoarding oil following the reduction in prices of petroleum products across the country last year.

Their counsel said that the Oil and Gas Regulatory Authority (Ogra) had issued show-cause notices to the petitioners on the allegations of hoarding and causing a shortage of petroleum products in the country in the first week of June 2020, which were replied to accordingly.

The counsel said although Ogra had initiated the proceedings, the Federal Investigation Agency (FIA) also took cognisance of the matter, and acting with mala fide intention, harassed the petitioners though they were willing to cooperate in the proceedings initiated by Ogra and the investigation undertaken by the FIA.

The counsel questioned the proceedings initiated by the FIA and said that the authority had no jurisdiction in the matter and, hence, the impugned notices were void ab initio and illegal. The lawyer informed the SHC that the petitioners had undertaken to ensure the balance of maintaining the legal minimum critical stocks and feeding their retail networks on a daily basis throughout the month, besides maintaining a 21-day stock.

The federal law officer sought time to file comments on the petitions. The SHC approved the law officer’s request and directed him to file comments on December 14. In the meantime, the high court continued the interim stay order under which no coercive action save in accordance with the law could be taken against the petitioners in the present investigation.