LPG kits’ installation in autos: Ogra likely to give qualified fuel/CNG stations special permission

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) may give special permission to qualified fuel/CNG stations to install LPG kits in autos subject to compliance to pre-defined safety regulations and inspection checks from Hydrocarbon Development Institute of Pakistan (HDIP) or any other party authorised by the Ogra under the new Liquefied Petroleum Gas (LPG) Policy 2024.

The finalised draft of the Liquefied Petroleum Gas (LPG) Policy 2024 will be shared with stakeholders ahead of the approval from the Council of Common Interest (CCI). The meeting of CCI would be held after the general election, sources said.

On December 26, 2013, the Ogra amended LPG Rules 2001 and banned the installation of LPG cylinders in motorcycles, scooters, and public service vehicles including three-wheelers, buses, coaches, and wagons terming it illegal.

Under the new policy, the Petroleum Division proposed that the Ogra shall develop and announce comprehensive LPG Auto Fuel Regulations for LPG use in 3-wheelers and public service vehicles/vans.

The MCs distributors would be able to sell their LPG at competitive market price under a deregulated regime. Explosive Department shall develop strong inspection regimes of MCs and its distributors and provide quarterly monitoring feedback to the Ogra.

The sources said, the Ogra licenced Marketing Companies (MCs) can import LPG, and market to determine the demand for import volumes. The Ogra shall ensure quality of imported LPG.

The Ogra will review LPG specification within three months and develop effective enforcement. Export of surplus local LPG, if any, may be allowed by the federal government based on the recommendations of the Ogra.

The Ogra shall develop and maintain the web-based database of the entire LPG sector, including production, import, import terminals, storage facilities, stocks, and consumer price across the country, etc.

For marketing distribution, the MCs will be obligated to market their LPG quantities on their own and would not be allowed to resell to any other MCs to avoid cartelisation, windfall profits, impede competition and market distortion.

The SNGPL and the SSGCL shall enhance market presence by development of retail network.

Copyright Business Recorder, 2024