Plan of putting Ogra under Petroleum Ministry’s administrative control is landed in troubles as the regulatory authority has termed the attempts to end sovereignty as inconsistent to the orders of apex court and against the interests of general public.

Since Ogra and Petroleum Ministry have a plethora of controversies over certain subjects including LPG air mix, and imported LNG projects, favourite gas tariff of state-owned gas utilities and Rs10 billion hefty collection from over burdened gas consumers on account of stolen gas so it seems that tussle between both would go worse in next couple of days as Ogra has now submitted its response over proposed 15 amendments in Ogra Ordinance sought by the ministry from the federal cabinet.

Ogra’s response towards certain amendments in Ogra Ordinance available with TheNation disclosed that the regulator while declaring the ministry’s initiative of ending Ogra’s sovereignty as contradictory to the orders of Supreme Court (SC) has expressed its disagreement over all proposed amendments in the ordinance except of one amendment comprising ‘sale of CNG’ sought by the ministry.

The regulator in its response said that Petroleum Ministry’s objective of introducing amendments in Ogra Ordinance is wrong because federal cabinet after 18th Amendments has no power to approve amendments in the ordinance and amendment in ordinance necessarily requires the approval of Council of Common Interests (CCI) after which the Cabinet Division in a bid to introduce amendments is authorised to forward the summary to Parliament House.

Ogra in accordance to its ordinance and further in the light of Supreme Court’s orders is a sovereign body and is not bound to accept anti-consumer rights orders of the government. The regulator further made it very clear to the federal government that it would earn irreparable losses by suspending Ogra Ordinance in the name of public emergency because Ogra, while being a subordinate body of the federal government, would not able to protect rights and interests of common public and stakeholders as well.

Ogra’s response further says that with certain amendments induction of a word ‘directive’ instead of the word ‘policy guidelines’ and bounding Ogra to act in accordance to the ‘directive’ despite the fact that it is against the Ogra Ordinance is inconsistent to the Supreme Court’s order made on 20th December 2005. The apex court in its decision had declared that Ogra is not bound to accept anti consumer right policy guidelines.

Regarding the appointment of chairman and members of Ogra, the regulator further says that appointments are purely made on merit and in transparent manner and if Petroleum Ministry will appoint the chairman and members of Ogra then there will be a clash of interests, which is against the principles of justice because the petroleum ministry itself is a stakeholder in petroleum mid and downstream sector.

Similarly, Ogra has also opposed the appointments of Member Liquefied Petroleum Gas (LPG) and Member Law on the ground that Ogra is already facing financial troubles and its funds goes to consolidated funds in accordance to Finance Bill 2012 so owing to these problems at hand burden of two new members will be out of regulator’s limits.

Ogra further advocated that gas price would go further up by passing the cost of imported gas to consumers and cost of imported gas should be included through cross subsidy. The regulatory authority with a mission to safeguard public interest through efficient and effective regulation in the midstream and downstream petroleum sector has highlighted that transportation of LPG air mix throughout the country is technically not possible. Further, Ogra in its response has declared that there is no complexity in Ogra Ordinance 2002 and it is not facing difficulties in decision-making.

It merits mentioning here that earlier Ministry of Petroleum & Natural Resources (MP&NR), in a bid to deprive the independent of Ogra from its sovereignty, drafted a bill seeking certain amendments in Ogra Ordinance, which at first stage has been tabled before federal cabinet and then would be presented in the National Assembly for final approval to make it part of Ogra Ordinance.

The ministry in its proposed amendments has sought approval from the cabinet to directly bring Ogra under petroleum ministry’s administrative control instead of Cabinet Division. The amendments also told that the federal government by declaring war or public emergency, would be able to set aside this ordinance completely or any of its part and the decision would remain in full force till termination of such war or public emergency. ‘If any question arises whether a directive issued by the federal government is consistent with the Ordinance or not, the decision of the federal government thereon shall be final.’

The draft copy of amendments in Ogra Ordinance also made it very clear that appointments and removal of chairman and members of Ogra would be made by Prime Minister on the recommendations of a committee chaired by the NP&NR and Finance Divisions and Member Energy of the Planning Commission.

At present, OGRA like other regulators is functioning under Cabinet Division in the supreme interests of the oil and gas consumers and also inline with international practices. Proposed control of Ogra is tantamount to further increasing government influence in the regulatory regime, which is contrary to the international practices and there is a fear that international donors can raise voices against this move, which as a result would ultimately make the regulator toothless in protecting the rights of consumers.