Energy tribunal issues notices to PSU oil firms

The Appellate Tribunal for Electricity (ATE) on Wednesday issued notices to the three PSU oil marketing companies IndianOil

The Appellate Tribunal for Electricity (ATE) on Wednesday issued notices to the three PSU oil marketing companies IndianOil (IOC),Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) on petitions filed by Reliance Industries,Essar Oil and Shell.

The three companies have challenged the dismissal of their plea by sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) against alleged cartelisation in petrol and diesel pricing by the PSUs.

The PNGRB had in July dismissed the petition alleging cartelisation and predatory pricing by PSU oil firms in pricing petrol and diesel below cost saying market pricing of fuel would jeopardise consumer interest.

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Admitting the petitions,a two-member bench of the ATE also issued notices to PNGRB and asked them to file replies by October 5.

The ATE has additional jurisdiction to hear appeals against orders of the PNGRB.

RIL,Essar and Shell will get a weeks time after that to file rejoinders to the replies filed by the PSUs and the sector regulator.

The tribunal,headed by its chairman Justice MK Vinayagam,also condoned the delay on part of the private retailers on filing appeal against the order of the PNGRB. The matter would now come on October 15 for hearing.

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During the proceedings of the tribunal,senior advocates CS Vaidyanathan and R Chandrachud appearing for RIL contended that PSUs were selling diesel and petrol below the market cost and it was an unfair trade and anti-competitive practices by them on the instruction of the government,which is their majority shareholder.

The matter would now come on October 15 for hearing. We have made investment only on the belief that the prices would be market linked, he said,adding that even the regulator had virtually accepted the contention PSUs were artificially keeping prices lower but did not allow its claim.

It is our view that if fostering competition by allowing prices to rise to levels of import parity as prayed for by the complainants will,instead of promoting consumer interests,actually jeopardies it, a two-member bench of the PNGRB had said.

UNFAIR TRADE

* Three private oil retailers Reliance Industries,Essar Oil and Shell have moved the ATE on dismissal of their plea by the PNGRB

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* The plea alleged cartelisation and predatory pricing by PSU oil marketing firms IOC,BPCL and HPCL in petrol and diesel prices

* While dismissing the plea,the PNGRB said that market pricing of fuel would jeopardise consumer interest