ISLAMABAD: Federal government has approved new policy guidelines for the installation of LPG Air-Mix Plants (AMPs) by the private sector of LPG (Production and Distribution) Policy 2016.
Under the new guidelines, the private sector will be free to set up LPG AMP on commercial considerations at their own costs and liabilities subject to meeting the regulator the Oil and Gas Regulatory Authority (Ogra)’s licensing and operational requirements.
The LPG supply preference or dedication mentioned in the LPG Policy 2016 will not be applicable on LPG AMP developed by the private sector. However, LPG AMP may be entitled to purchase LPG in bulk at producer’s price notified by the Ogra, from time to time.
Tariff for LPG AMP, developed and operated by the private sector, will be deregulated.
The status of LPG AMP licenses shall be the same as that of the LPG storage, filling and distribution plant and they shall also be entitled to import LPG governed by the prevent trade policy and any other applicable policies/ law/ rule or instructions/ directives of the federal government.
The LPG AMP licensee/ developer/ owner of the society shall not prohibit the consumers/ suppliers for switching to alternate competing fuels supplied by any third party (be it of piped natural gas or LPG cylinders, another LPG AMP, virtual LNG project, etc).
The LPG AMP licensee of such plan will notify monthly tariff for information of consumes, and also submit detail of monthly tariff to OGRA latest by 10th of every month.
The Ogra will ensure that the LPG AMP licensee may not take any measures to prevent marketing of LPG cylinders in the area where LPG AMP is supplied.
The complaints resolution in respect of the pipeline network for the distribution of LPG and its metering to the households shall be done by Ogra as being done in the natural gas sector.
The Ogra being a regulator of the LPG sector is advised to comply with policy guidelines under intimation of this division.
Copyright Business Recorder, 2023
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