The policy envisages if any marketing company is found involved in violation, would have to face cancellation of its licence.
Under the policy decanting of LPG from cylinder to cylinder is prohibited and across filling of other LPG marketing companies' cylinder is also prohibited except with the prior approval of OGRA under hospitality arrangement.
Similarly, OGRA will publish a list of authorized manufacturers for all LPG equipment including LPG refueling stations, conversion kits, fuel tanks, cylinders and storage tanks.
Moreover, the equipment of these authorized manufacturers will be verified and monitored for conformance to the international standards throughout strict quality control and quality assurance measures by the regulator concerned.
According to official source, under the policy all the marketing companies shall provide certificate mentioning the serial number of cylinder to the OGRA before December 31 each year, confirming that all of their cylinders have been thoroughly tested as per requirement.
Furthermore, it shall be responsibility of LPG marketing companies that their LPG cylinders have been revalidated by HDIP or any other authority concerned after every five years.
The policy, the source said envisages adequate supply of gas to remote and hilly areas and eliminate its shortage in under-developed areas of the country.
The policy, prepared after extensive consultation, will go a long way in extending relief to the poor consumers as all marketing companies having licensed LPG storage and filling plants in Punjab and Khyber Pakhtunkhwa will be bound to supply at least seven percent of their local LPG in Northern Areas, seven percent in Azad Jammu and Kashmir (AJK) and six percent in the Federally Administered Tribal Areas (FATA), Muhammad Irfan Khokhar of LPG Distributors Association said.
While the marketing companies having licensed LPG storage and filling plants in Sindh and Balochistan would be obligated to supply at least 10 percent of their local LPG in Balochistan, he added.
Ensuring adequate supplies of LPG in remote, rural and hilly areas of the country, Khokhar said, would also help halt deforestation that had been one of the main issues in the wake of gas shortage.
According to the policy, the Oil and Gas Regulatory Authority (OGRA) would develop an appropriate mechanism to monitor actual supplies to the specified areas.
Similarly, OGRA would initiate action against defaulting LPG marketing companies under the applicable rules and license conditions which may include revocation or cancellation of license.
According to a Spokesman of the Ministry of Petroleum and Natural Resources, the new policy was based on the principle of parity of price for local and imported LPG.
The policy has taken away the market manipulation power of local LPG mafia and the ultimate benefit of this price parity will go to general public, the spokesman said.