Cabinet seeks explanation from Ogra over terrorizing LPG distributors

The Cabinet Division has sought an explanation from the Oil and Gas Regulatory Authority (OGRA) on the matter of ill-treatment and misbehavior towards the delegation of the LPG Distributors Association by Member Gas OGRA, Mr. Muhammad Arif.

Member Ogra had threatened LPG distributors in a meeting summoned on the issue of taking action against the powerful cartel involved in black marketing of LPG and minting around 8 billion rupees.

In this regard the Cabinet Division’s letter No. 6/10/2008. RA.ii/OGRA and letter No. U O.NO 19/2/2022 has been written to the chairman OGRA informing that an application has been given to Chairman Senate Sadiq Sanjrani in the Senate Secretariat.

A reference was made to OGRA’s meeting on LPG prices and black marketing held on September 12 where Member Gas Muhammad Arif threatened serious consequences while adopting an inappropriate attitude towards the LPG distributors delegation.

The Secretary of the Cabinet Division has been asked for comments and the matter has been referred to the Senate Standing Committee on Cabinet Secretariat.

It is pertinent to mention here that an important meeting was held in OGRA office Islamabad with Chairman OGRA Mr Masroor Khan and his team regarding the issues of black marketing of LPG and how to control it.

The meeting continued for almost an hour during which the Chairman OGRA was keen to devise some effective strategy against over-charging but like previous meeting it was noted that Member Gas Mr Muhammad Arif was the least bit interested, had a casual attitude in the deliberations, and at times resorted to misbehaving and abusive language with almost all distributors during the discussion, sabotaging the serious and noble effort of the Chairman OGRA to curb black marketing.

The Member OGRA somewhat ordered Chairman LPG Industries Association Ifran Khokhar at the end of the meeting to meet him personally the next day (13 September 2022) at 11- 12 pm for a discussion on the issue. When on his command Mr Khokhar reached the OGRA office at the allotted time, Mr Arif already had a visitor.

However, Mr Khokhar apprised him that for the last 20-25 days, historical black marketing of LPG was underway in Punjab, Khyber Pakhtunkhwa, Azad Kashmir, Gilgit-Baltistan, and other areas.

About Rs 20 per kg, Rs 2,400 on the domestic cylinders, Rs 9,000 on the commercial cylinder and Rs 2,000 per metric ton extra were being charged against OGRA prices fixed for September. Black marketers are pocketing around Rs 400 million on daily basis and in the last 20-25 days about Rs 8 billion has been swindled. Hearing this notion, Mr Arif became furious and started calling names to Mr Khokhar.

He also threatened him with dire consequences. Mr Khokhar was so shocked at his unruly attitude that he left the office in utter disgust.

It is also to bring to your notice that black marketing of LPG has broken all previous records across the country and around Rs 8 billion were swindled by a poor segment of the society. Almost Rs 400 million worth of LPG is being sold on the black market every day

A big question is where the locally produced LPG has vanished as the illicit sale of LPG at Rs 200 per kg, a domestic cylinder at Rs2,400 and commercial cylinder at Rs 9,000 is underway for the last 20 to 24 days and black marketers have slurped around 8 billion rupees of people’s hard earned money.

The LPG Industries Association is of the view that local gas is being monopolized by a few people due to which black marketing is rampant. It is evident that Oil and Gas Regulatory Authority Member (Gas) Muhammad Arif is wholly and solely responsible for this black marketing and demands Prime Minister Muhammad Shahbaz Sharif for strict action against him.

Chairman LPG Industries Association Irfan Khokhar stresses that the local production is enough to meet the requirement yet black marketing continues. Whereas, at Port Qasim SSGC Terminal 4500 MT and at EVTL 3500 MT of LPG are available readily.

“Furthermore,  about 400 Bozers at Taftan border and 250 are awaiting the opening of the routes to Punjab and Khyber Pakhtunkhwa. There is no shortfall of any kind. 74,000 metric tons were imported in August 2021 and about 88,000 metric tons were imported in August 2022.”