Judicial scrutiny of oil prices

WHILE hearing three petitions seeking apex court’s intervention in what is alleged as jack-up of prices of petroleum products by a cartel of oil marketing companies (OMCs) and refineries which stately enabled the latter in pocketing a colossal amount of Rs.150 billion as undue profit, the honourable Chief Justice of Pakistan advised the Federal Government on Wednesday to reduce oil prices in view of their gradual decline in world market. Surprisingly, Advisor to Prime Minister on Finance Salman Shah is reported to have stated that the Government had no intention of reducing oil prices until it had recovered the losses it incurred on payment of subsidy to keep their prices at a certain level.
While the Government may have a case in recovering losses on account of subsidizing oil prices, it is indeed intriguing as to why the Ministry of Petroleum is not making public the comprehensive findings of a Senate committee headed by Senator Syed Dilawar Abbas of PML (Q). Another detailed enquiry report compiled by the National Accountability Bureau into the jack up of oil prices by the Oil Companies Advisory Committee (OCAC) which comprises only the representatives of the OMCs and petroleum refineries is also being withheld by the Government. This report highlights the astronomical profits earned by the OMCs and refineries during the past five years as through OCAC they continued to manipulate oil prices to the detriment of the consumers.
Time and again the Daily Mail has pointed out in these columns that regulation of oil prices was imprudently assigned to the OCAC which promoted interests of its members at the cost of the end consumers and the national economy. This regulatory function should have been performed either by the Ministry or by the Oil and Gas Regulatory Authority (OGRA). The Government few months back finally entrusted this task to OGRA though as yet the consumers have not been passed on the benefit of cheaper petroleum products in the international market. Needless to emphasize, cheaper transportation cost has a salutary effect on prices of all items particularly items of daily use.
It is time the Government came clean on the issue, disclosed relevant facts as directed by the apex court and took consequential remedial steps to correct the wrong being done to consumers and the national economy. A larger Bench of the apex court will resume hearing of this issue on December 11 when it is hoped all material facts will be placed before it for its consideration. It is also important that huge profits unduly pocketed by OMCs and petroleum refineries as estimated by the NAB are recovered and spent on development of the oil sector.
 

Agenda in Amman

PRESIDENT Bush is in the Middle East for a crucial summit with America’s close allies. As you read this, Bush would have already met Jordan’s King Abdullah and Iraq’s Prime Minister Nuri al Maliki in Amman. The Amman meeting is aimed at finding ways to end the murderous mayhem in Iraq. It comes at a time when Iraq’s survival as a state itself is at stake. Every coming day brings more death and misery to a people who have already suffered enough. October and November have proved to be the deadliest so far. No one is safe in today’s ‘free’ Iraq.
Repeated parallels have been drawn between Iraq and Vietnam since the US invasion three years ago. But when compared to Iraq, the Vietnam of 30 years ago looks like a long picnic. Vietnam took several years to reach the stage when the US was forced to cut and run. By dissolving Iraqi security services and state structure after the invasion, US managed to bring on the Vietnam moment in Iraq rather early in the campaign.
The mind-numbing carnage and bloodshed between Sunnis and Shias are unprecedented not only in the long history of Iraq but also in the entire Middle East. Earlier this week, six Sunnis were burnt alive by Shia militias. This is totally alien to this ancient land of prophets and civilizations. And yet the US officials — and the media — are loathe to acknowledge this daily dance of death as a civil war for fear this will step up the pressure to bring the US troops home. This is indeed not a civil war. This is war — pure and simple and one in which there are no rules of engagement.
And yet Bush refuses to confront the reality of Iraq. A day before leaving for Amman, he blamed Al Qaeda for sectarian killings in Iraq. Al Qaeda may have indeed played a role in dividing Sunnis and Shias. But blaming it for the Iraq mess is crediting Al Qaeda for something it doesn’t deserve. It is this naive and unrealistic approach that is at the heart of Iraq’s present woes.
If Washington really wants Iraq to return to peace and order, it mustn’t ignore the ground realities. Bush must push Iraq’s current leaders to rein in the militias, controlled by parties that are part of the ruling Shia alliance. Even PM Maliki understands that peace will elude Iraq as long as both insurgents and militias are not controlled. He admitted as much last week when he pleaded with the lawmakers to stop fighting a war in which there are no winners. The US must do everything to stop this war with no winners.

—Khaleej Times