ISLAMABAD: To curb the menace of overcharging and decanting of LPG ahead of winter season, the Oil and Gas Regulatory Authority (OGRA) has authorised all Deputy Commissioners and Assistant Commissioners to take on the spot action.
Owing to suspension of LPG transportation caused by severe floods and road blockages during last month of September, LPG consumers across the country were found complaining about the overpricing of LPG.
However, following the complaints of shortage, overpricing and decanting of LPG, OGRA has swung into action to curb the menace of overcharging by authorising the Deputy Commissioners and Assistant Commissioners of all the provinces to take action on ground, saying it is taking all possible regulatory measures to respond to the current situation aimed at consumer’s comfort and maintaining balance throughout LPG value chain.
OGRA, in its response on a public petition 4899 to the Cabinet division dated September 3, 2022, has informed that the OGRA has taken numerous regulatory reforms in LPG sector including minimum LPG storage capacity has been fixed at 50MT for all new licensees. Previously some licenses had been granted on the basis of a five (5) MT only. All such small LPG Marketing Companies have also been given time to increase their storage capacity upto a minimum of 50 tons, said OGRA letter.
OGRA also told the cabinet division that the LPG market is a blend of local and imported LPG in a ratio of about 50:50 in summer and 40:60 in winter. The demand guides the market forces for import which is not restricted and any LPG licensee can import LPG in any quantity it can sell while market dynamics determine the supply sources and volumes.
OGRA, in its response to Cabinet Division further said that the plea of complainant is unrealistic, superfluous and attempt to divert the attention from the people involved in overcharging i-e mainly LPG distributor to whom the complainant himself claims to be the chairman, contrary to the facts.
Earlier, Irfan Khokhar, Chairman LPG Industries Association in a petition submitted before the Senate chairman had pleaded that over pricing by upto Rs 200/kg (Rs 2400 per domestic cylinder & Rs900 per commercial cylinder) is being done in the on-going month of September 2022 and due to this black marketing of approximately Rs8 billion has been done in the country. However, OGRA has now declared that the complainant is not a licensee of OGRA or legitimate stakeholder.
He represents a bogus association with name and title Distributors Association of Pakistan (DAP), which is not registered under the laws of Pakistan, hence he cannot be treated as collective bargaining agent. A few years ago and most recently also, a communication in this regard was also received in OGRA from All Pakistan LPG Distributors Association received from Ministry of Energy, DAP was asked to provide the requisite documentation in the name of DAP showing as registered association as per legal requirement of Ministry of Commerce, but it failed to do so, hence OGRA informed Ministry of Energy vide its letter dated March 12, 2018 that no correspondence from DAP shall be entertained in future.
