ISLAMABAD-Following the downward trend in petroleum products prices in international market, the Senate Standing Committee on Finance and Revenue on Wednesday asked the Competition Commission of Pakistan (CCP) to issue a policy note to Oil and Gas Regulatory Authority (OGRA) for 20 per cent reduction in POL prices.
The Senate body has asked the Competition Commission of Pakistan (CCP) to issue the policy note to the government of Pakistan for decreasing oil prices in the country, as the Commission normally issues in other matters. The Senate Standing Committee, which met under the chair of Senator Osman Saifullah, has asked the CCP to take up the matter of petroleum prices with the government and OGRA.
Committee member Senator Ilyas Bilour of Awami National Party asked the CCP to issue the policy note to the government, which is not reducing the oil prices according to the trend in international market. He asked to slash the petroleum products prices by Rs 10 per liter.
The officials of the Competition Commission of Pakistan (CCP) informed that they could review the matter if the committee recommends it, otherwise the Commission could not appraise it, as there is no competitor in this case. CCP Chairman Dr. Joseph Wilson said that the OGRA is the appropriate regulator dealing with prices of petroleum products and the issue comes under the jurisdiction of the OGRA.
The Senate Standing Committee discussed the performance of the Competition Commission of Pakistan in detail. The committee members unanimously agreed that CCP should be empowered and strengthened to stop the deceptive practices in markets and save the consumer rights in the country. The committee also recommended the government to introduce legislation in the competition law for providing powers to the CCP for recovery of fines and enforcement of laws to promote competition in the market. The CCP briefed the committee that Commission had imposed Rs 15 billion fines in various cases till 2007 but it received only Rs 1.7 million, as affected parties obtain stay orders from courts when fine imposed on them.
In his remarks, Senator Osman Saifullah Khan said that different production companies and industries in connivance with each other had made cartels in the country and CCP is not taking action against them. Cement, petroleum, fertilizers and banks had made cartels in the country, he alleged. Despite Pakistan being the fifth largest country in terms of milk production, but milk prices are high in the country compared to the United States.
Senator Ch. Shujaat Hussain alleged that five major banks in connivance with each other are had monopolized things, as they are discriminating among politicians regarding bank loans.
Senator Ilyas Bilour said that the statutory regulatory orders (SROs) have been issued to impose anti-dumping duties on the influence of local industry. CCP chairman said that the Federal Board of Revenue is the competent authority to issue SROs.
Senator Haji Adeel was of the view that the commission must take notice of advertisements relating to the beverage industry, soap/washing powder, consumer items like toothpaste and other sectors making tall claims in their ads. The members asked that CCP should take up the matter of flights with PIA and direct PIA to resume flights from Peshawar to other cities such as Quetta, Islamabad.
CCP Chairman Dr Joseph Wilson pointed out that the CCP has started investigation against an association of media houses suspected to be involved in management of members’ advertisement business, reflecting possible collusion among media houses. Thirdly, poultry feed manufacturers suspected of fixing prices in connivance with each other and fourthly, the cement manufacturers suspected of collectively fixing prices.
Senators Saleem Mandviwalla, Osman Saifullah Khan, Chaudhry Shujat Hussain, Syeda Sughra Imam, Haji Muhammad Adeel, Sardar Fateh Muhammad Hassani, Muhammad Talha Mehmood, Ilyas Ahmad Bilour, Chairman Competition Commission (CCP), Chairman Competition Commission of Pakistan, Dr. Joseph Wilson and other officials participated in meeting of the committee.