Setting up LPG auto stations: Ogra makes disputed amendment in rules

The Oil and Gas Regulatory Authority (Ogra) has made controversial amendments in the regulatory framework by allowing LPG sector to set up LPG auto stations in congested and residential areas, which may pose serious threat to public safety.
In its earlier communication, sent to All Pakistan LPG association (APLPGA) on August 13, 2010, the Ogra had expressed reluctance to accept the proposal of the Association to make amendments in regulatory framework for setting up LPG station in residential or congested areas. But it inexplicably amended the regulatory framework on December 3, 2010 allowing stations to be set up anywhere.
The federal government in September 2005 had approved, in principle, to allow use of LPG in automotives, subject to Ogra preparing a regulatory framework. The Authority (Ogra) accordingly developed the regulatory framework in consultation with all stakeholders and, with approval of the federal government, LPG rules were notified in March 2007.
According to notified rules "the LPG auto refuelling/dispensing station shall not be located in congested and residential areas nor should any of the adjacent buildings be used for accommodation or public gathering of any sort".
However, this rule has now been amended, by the Ogra, to the benefit of certain groups engaged in setting up LPG stations. According to new rules, "the LPG auto refuelling, dispensing station can be installed at any location, subject to the condition that the licensee will adhere to all the requirements of National Fire Protection Association USA (NFPA-58) in order to ensure complete safety of the LPG refuelling station and its surroundings pertaining to operation of the station."
The Ogra in its letter sent to APLPGA on August 13, 2010 said:"While NFPA-58 provides guidelines ensuring safety at the LPG dispensing station it does not adequately cover the requirements of area around the dispensing station".
"The authority is of the view that for a country like Pakistan proper sitting of LPG dispensing stations is all the more important due to high population densities, poor traffic conditions, poor public awareness towards safety and weak emergency response at local level", the letter adds.