Press Release Detail

Islamabad,  

The Competition Commission of Pakistan (CCP) has taken notice of arbitrary fixation of prices of CNG by CNG Station Owners Association of Pakistan and directed its Chairman to submit relevant information regarding the working of the association and the powers being exercised by it in fixation of sale prices of CNG in the country. The action has taken by the CCP in view of numerous reports published in the national press complaining that the CNG Dealers Association was fleecing the consumers by fixing the prices in an arbitrary and cartel like manner for various parts of the country. The Oil & Gas Regulatory Authority (OGRA) vide its letter dated 05-07-2008 addressed to the Chairman, CNG Station Owners Association of Pakistan (and copy thereof endorsed to the Chairman, CCP) has also informed that CNG consumer price is deregulated and is determined by the CNG license on competitive basis. According to this letter OGRA states that no CNG association, therefore, has any legal authority to determine, fix or notify CNG consumer price as a cartel. Therefore the collusive behaviour of CNG Owners Association in fixing prices would be monitored vigilantly. The CCP vide its letter dated July 09, 2008 addressed to Malik Khuda Buksh (Chairman, CNG Station Owners Association of Pakistan), Karachi has asked for a formal response to the issues raised therein, by July 21, 2008.

The letter asks whether, a) the price of CNG is exclusively fixed by the association or if there is any role played by regional associations as well in price fixation of CNG? b) the association ever asked its member CNG stations to stop supply of CNG to the customers? c) the price fixed by the association is applicable throughout Pakistan on a uniform basis or it varies from region to region? d) there is a price monitoring system devised by the association? e) the membership of the association is compulsory for all the CNG stations? The Competition Commission of Pakistan will determine its course of action after due consideration of the response provided and a thorough review and analysis of all relevant facts pertaining to the industry. In another move the CCP has directed executives of Cement Sector to appear as witnesses in the case of obstruction of CCP officials duty of conducting search and inspection of APCMA office. CCP showed concern regarding "the economic loss caused to the students who were forced to purchase the Laptops" by Bahria University . ( June 10, 2008 ) The Competition Commission of Pakistan (the Commission, CCP) has directed the Administration of Bahria University, Islamabad , to appear before the Commission on June 12, 2008 and explain as to why proceedings under Competition Ordinance, 2007, may not be initiated. Taking notice of a news item published in the Daily "The News" on 16-02-2008 alleging that the students seeking admission in the Bahria College were being forced by the University authorities to buy Laptops, CCP decided to initiate an inquiry. Vide their letter dated March 04, 2008, CCP asked the University for their comments on the allegation made in the said report, mainly:-

• Bahria College (the College) has made it mandatory for new entrants to buy Laptops imported by the College;

• 4500 Acer Laptops purchased in 2006 have been sold as a pre-condition to those who got admission in certain disciplines during 2007 and 2008;

• A large number of students were reluctant to buy these Laptops as they already had their own but still they were forced to buy these machines to qualify for admission to the College; and

• Almost 1500 machines still remain unsold and would be provided to the next batch of students admitted to the College. CCP showed concern regarding "the economic loss caused to the students who were forced to purchase the Laptops". To assess and address this concern, the Commission has granted the University an opportunity of being heard and to explain the University's position. The hearing is scheduled for 12 th June, 2008 at 11 a.m. at the CCP Head Office, Islamabad . .



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