OGRA to register LPG dealers
A committee headed by Deputy Chairman Planning Commission recommends registering LPG distributors for sustainable LPG pricing.
Atif Abbas
Liquefied Petroleum Gas (LPG) is fuel for the common man in Pakistan. But it is not a sustainable sector due to volatile prices. The different governments have formed policies during their tenures to make it sustainable.
Earlier, the past government had deregulated this sector for sustainable supply and stable prices. However, the previous government of PML-N switched from deregulation to regulation of LPG prices.
In the oil industry, the oil and gas regulatory authority (Ogra) regulates dealers. But, LPG dealers are free to charge overpriced, especially in the winter season, rising in demand.
Despite all this, consumers are still at the mercy of the LPG industry. There is no one to place a check on LPG dealers.
PTI government plans now to form a policy allowing OGRA to register LPG dealers. Under a plan, the regulator will issue distribution licenses to LPG dealers.
Cabinet Committee on Energy (CCoE) had formed a committee to prepare recommendations for approval. Deputy Chairman Planning Commission heads a committee.
READ Govt mulls increasing PL on LPG.
The committee has considered a set of proposals that included the registration of LPG dealers with Ogra. This will help Ogra to keep a check on prices to rescue consumers from exploitation.
The committee said that Ogra should grant a license to technical and financially stable companies. It should also register the distributors to improve the functioning of the LPG market.
Ogra to develop databank of LPG sector
The committee recommends that Ogra should digitize the LPG sector and develop a related databank. This plan will maintain all records of LPG producers, marketing companies, and LPG distributors. It would help the regulator to take action in case of unfair prices and monopolistic practices.
Decanting of LPG cylinders
At present, hundreds of LPG dealers use the decanting of LPG cylinders. It is a risky task as it results in a blast. It urges Ogra to remove the root cause of decanting/re-filling. The committee urges Ogra to introduce the quality of cylinders.
Ogra to introduce the optimal quality of LPG cylinders, including domestic-made of composite materials.
Energy Member Planning Commission
He has urged to continue LPG Policy 2016 for market designs. Member energy said the government should focus on the equivalence of domestic and LPG pricing.
He stressed enhancing the domestic LPG Production while removing barriers to the LPG imports. As a result, it should bring supply and price stability in the market at the same time.
He said that Ogra should evaluate and advise on the design and implementation of IFEM for LPG. Consequently, the government will introduce sustainable uniform LPG pricing across the country.
He urged to discourage the expansion and use of LPG in autogas to private vehicles.
Member said that the government should not base Petroleum Levy on the revenue target of the finance division. Instead, the government should use it as a direct subsidy for targeted customers in priority supply areas.
He stresses enhancing and strengthen the monitoring and compliance role of Ogra through third-party services. Ogra should develop a model to implement on an immediate basis.
A special treatment to PSO
At present, Pakistan State Oil (PSO) is a major player in LNG imports. However, this has put a burden on circular debt due to expensive products. Consumers are not ready to pay full price.
Now, member planning stresses the increasing role of PSO in LPG imports. However, he said that the government should give special treatment to PSO in this regard.
He urged the government to specialize in LPG imports under PPRA rules to respond to demand fluctuation s in the LPG market.
