The Oil and Gas Regulatory Authority (OGRA) will launch drive against sub-standard LPG cylinders and grant licenses to only those manufacturers who comply with safety standard. This was stated by Chairman LPG Distributor Association, Irfan Khokhar at a briefing after a meeting with Chairman Oil and Gas Regulatory Authority (OGRA) here on Wednesday.
Flanked by Chairman, LPG Cyliner Manufacturers Association, Jameelur Rehman and other members of the delegation, Irfan Khokar claimed that about 300 factories in Gujrawanla are involved in manufacturing sub-standard cylinders.
He asserted that about 720 people were reportedly killed owing to accidents related to sub-standard cylinders since the introduction of LPG as fuel by the consumers in the country.
The Authority, he said, has set up a complaint cell to address grievances of Liquefied Petroleum Gas (LPG) Distributors Association. The cell would play an important role in handling and resolving problem beings faced by the LPG distributors, he added.
He said that with the establishment of the cell the long lasting demand of the association had been fulfilled. Irfan said that OGRA had also assured the association to de-link LPG prices with international market and chalk out a new mechanism for equal distribution of profit among producers, distributors and retailers, adding it would help remove profit disparity between the three stakeholder.
Irfan said that OGRA had informed the association about increase of Rs 6.24 in per kg LPG from December 1, and now per metric ton (PMT) will cost 90 dollars. He said that LPG Distributor Association in its meeting with the Chairman OGRA had presented a demand of giving subsidy on LPG as presently the government was subsidising petrol, diesel and other petroleum products including natural gas.
LPG Distributor Association was of the view that local LPG accounts for 96 percent of total production in the country and there was no justification for linking its price to international levels.
The association demanded that LPG forms part of the petroleum policy and its pricing mechanism should be the same as the applied to other petroleum products.
It cannot compete with subsidised fuels and therefore, its price should also be lowered immediately. He said that LPG was safe, environmental friendly locally produced fuel and efforts need to be made to ensure that its use continues to grow.
He expressed his reservation over equating its prices with international prices saying it would diminish its use as alternative fuel, thus causing burden for common man.
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