Registration of LPG dealers with Ogra: CCoE forms body to prepare recommendations for approval

ISLAMABAD: The federal government has decided to devise a plan under which the Oil and Gas Regulatory Authority (Ogra) will be empowered to issue distribution licenses to the LPG dealers. The Cabinet Committee on Energy (CCoE) set up a committee under deputy chairman Planning Commission to prepare recommendations for approval. Pakistan Peoples Party government had deregulated the LPG sector for sustainable supply and stable prices.

However, the government of PML-N switched from deregulation to regulation of the LPG prices. In the oil industry, the Ogra regulates dealers, however, the LPG dealers are free to charge overprices especially in the winter season with rise in demand. Under the plan, registration of the LPG dealers with the Ogra will help the Ogra to keep a check on prices to rescue consumers from exploitation. The Ogra would grant a license to technical and financially-stable companies.

It will also register the distributors to improve the functioning of the LPG market. Under the plan, the Ogra will digitise the LPG sector and develop a related databank, and it will maintain all records of the LPG producers, marketing companies, and the LPG distributors, which would help the regulator to take action in case of unfair prices and monopolistic practices.

At present, hundreds of LPG dealers use the decanting of the LPG cylinders, which is a risky task as it results in a blast. Under the plan, the Ogra will introduce the optimal quality of LPG cylinders, including domestic - made of composite materials.

Copyright Business Recorder, 2020