KARACHI: Atif Ikram Sheikh, President FPCCI, has demanded that the country needs a new law for its Oil & Gas Regulatory Authority (OGRA) to reflect the ground realities of LPG supply chain in the country and make the regulatory environment facilitative, enabling and fair to all the stakeholders and consumers.
Atif Ikram Sheikh elaborated that OGRA law does not include retailers and ends with the distributors; and, that is the reason that so many accidents are happening at the retail level. Distributors should also be bound law to by provide data of their supplies to the retail shops. We need to bring all industry players under the law; make them obtain required licenses and follow the national regulations on LPG, he added.
It is pertinent to note that Masroor Khan, Chairman OGRA and Syed Hassan Ali Naqvi, Commissioner Karachi, visited the FPCCI Head Office on Monday to discuss the issues pertaining to enforcement of supply chain, pricing, storage, quality control and health, safety & environment regulations and standards set out for the LPG sector.
Atif Ikram Sheikh apprised that it was OGRA Chairman’s third meeting in FPCCI during 2024 and it manifests the criticality of the issues and the seriousness of stakeholders to find solutions to them. OGRA Chairman was also accompanied by three senior executive directors of the institution as well.
Atif Ikram Sheikh maintained that FPCCI wants OGRA to control the unregulated and unlicensed players of the LPG industry; as the unregulated sector is playing with the lives and livelihoods of the consumers and businesses in Pakistan. Additionally, there should be strict regulations for LPG filling stations or LPG shops to open and operate; coupled with strict standardization of LPG cylinders and their quality assurance.
Saquib Fayyaz Magoon, SVP FPCCI, highlighted that, in the context of rising population and depleting natural gas reserves at the same time, Pakistan should be prepared to deal with ever-increasing LPG consumption in the country. We can turn this challenge into an opportunity by attracting foreign direct investment (FDI) into LPG industry in collaboration with the private sector of the country, he added.
Saquib Fayyaz Magoon explained that Pakistani businessmen can have joint ventures (JVs); can establish collaborative cylinder manufacturing factories; make transfer of technology possible for the country and set-up certification, validation and audit labs for the LPG industry. We also need to ponder over the data that the petroleum industry imports upwards of $8 billion annually and exports only $200 million – and, how can we achieve some form of import substitution one way or the other, he added.
Ali Haider, Convener of FPCCI’s Central Standing Committee on LPG Industry, stressed that only the licensed LPG industry players are following the law, regulations and standards; and, the unlicensed are having an advantage over the law-abiding players. He added that LPG margins issue is lingering on since 2016; and, now is the time that OGRA makes a mechanism to resolve the issue in consultation with the business community.
Masroor Khan, Chairman OGRA, informed the session that the share of LPG in the national energy mix has doubled from 1 percent to 2 percent and it is expected to be rising steadily over the many years to come. We need to have world-class cylinders, bowser trucks and other related equipment manufacturing facilities in the country to match up to the fast multiplying demand, he added.
Syed Hassan Ali Naqvi, Commissioner Karachi, noted that, despite the enormous efforts of the law enforcement machinery and administrative departments, the government is profoundly concerned due to LPG-related accidents and loss of life. This is work in progress and we have made hundreds of shops to follow the law by now. Additionally, provincial ombudsman also recommends that OGRA law needs to be updated to make it more powerful, applicable and able to enforce the safety standards.
Copyright Business Recorder, 2024
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