ISLAMABAD:The Supreme Court on Wednesday heard a case challenging the alleged increase in the prices of cooking oil and ghee during Ramadan, with counsel representing market regulatory authorities and the Pakistan Vanaspati Manufacturers Association presenting their arguments before the Court.
During the hearing, Justice Irfan Saadat remarked that, “As soon as Ramadan arrives, instructions seem to be issued that it is the month for earning more profit, so increase the price of ghee.”
Counsel for the Competition Commission informed the Court that although global palm oil prices had declined, the prices of cooking oil and ghee in Pakistan had not decreased proportionately. He submitted that the matter related to price determination and noted that the government had also directed price reductions under its Ramadan relief package.
The Commission’s lawyer further stated that the Competition Commission had asked the Pakistan Vanaspati Manufacturers Association to reduce prices.
However, counsel for the Association argued that it could only issue directions to its members and had no authority to compel them to lower prices. He maintained that if any member failed to comply with the Association’s guidance, the Association could not enforce compliance. He further contended that the Competition Commission had issued an order against the Association even though it could not be held responsible for the pricing decisions of individual members.
At this point, Justice Jamal Khan Mandokhail questioned what powers the Association possessed if its directives were not followed. He also inquired under what legal status the Association had been registered.
In response, the Association’s counsel stated that it was registered under the Trade Organizations Act and that its primary purpose was the welfare of its members.
The Court observed that such issues frequently come before the judiciary. After hearing arguments from the parties, the Court adjourned the case for an indefinite period.
The matter was heard by a two-member bench headed by Justice Jamal Khan Mandokhail.