The Oil and Gas Regulatory Authority (Ogra) has the discretion to cancel licenses of the gas producing companies, if they fail to comply with the regulator approved LPG prices, media sources have reported.
Ogra has yet again asked the LPG producer companies to provide information of sale price charged by the marketing companies for the month of February and March. The data will help in determining the LPG prices for the marketing companies and may prove beneficial when determining whether to further reduce the 11.8 KG cylinder price.
Just last month, LPG producing companies refused to comply with OGRA’s regulated prices for LPG of Rs77, 220/ metric ton or Rs910 / 11.8 kg cylinder for locally produced LPG. Imported LPG was to remain deregulated as before for supply to industrial consumers and the auto sector. The marketing companies continue to sell LPG to consumers at Rs120 per KG. Furthermore, OGRA rejected marketing companies’ claims of LPG shortage in the country.
Pak-Arab Refinery Limited (PARCO) and Jamshoro Joint Venture Limited (JJVL) contested the LPG prices determined by Ogra. Ogra termed the claims to be weak not being backed by substantial and relavant justifications. Hence, OGRA asked the companies to submit authentic cost data for the required LPG business segment on urgent basis to which OGRA responded by saying that all companies had to comply with the LPG 2016 policy which clearly asks for companies to keep LPG prices affordable and sustained for domestic consumers.
Ogra expert is reported to have stated that Ogra has adopted a step by step approach to initiating action by issuing show cause notice to LPG producing and marketing companies and then in case of disobedience, the regulatory body could cancel the licences of the concerned companies.
