ISLAMABAD: Consumers – the weakest stakeholders of the petroleum industry – are going to bear the brunt of OGRA’s decision of dismantling the Enforcement Department as a third party is expected to carry out future enforcement of regulation activities in the country, said sources.
Sources in OGRA on basis of anonymity said that OGRA has set aside its prime function of protecting the consumers by dismantling the enforcement department and putting the entire responsibility of enforcement of regulation activities on the shoulders of Oil, CNG and LPG departments of the authority. They said these departments are not capable to fulfil the assigned task in a professional manner. After dismantling enforcement department, OGRA has paved the path to hiring third party to carry out enforcement of regulation activities at the cost of consumers, they added.
The sources also said that OGRA’s decision to dismantle Enforcement Department might affect enforcement of regulation activities, causing heavy loss to the national exchequer in the form of reduced revenue etc.
Enforcement Department was enforcing rules, regulations, and standards by conducting surprise inspections at licensed facilities and whosoever was found involved in malpractices and safety violations, action was taken under applicable laws.
Available performance summary of OGRA’s Enforcement Department from October 2009 till January 5, 2018 with Pakistan Today reveals that the Enforcement Department had conducted 10,350 inspections at retail outlets of Oil Marketing Companies, Liquefied Petroleum Gas (LPG) facilities and Compressed Natural Gas (CNG) stations from the year 2009 till 2017 and served 3010 show cause notices beside imposing fine of approximately Rs 275 million.
According to performance summary of OGRA’s Enforcement Department from October 2009 till January 5, 2018, Rs 260 million recovered from Shell Pakistan in Ahmedpur East after the unfortunate accident of oil tanker and disbursement of the same to the affectees. Similarly, the department recovered Rs 7 million from Hazara Efficient Gas in 2016 after the unfortunate accident of LPG bowzer, collected as well as disbursed among the affectees.
The OGRA’s Enforcement Department prior to the decision of its dismantling was developing accident reporting system for OMC facilities and oil tankers, LPG plants and CNG stations. The department had also developed site inspection proformas for different facilities. Moreover, the department ensured safety practices at licensed premises besides taking actions against malpractices through warnings, SCN (Show Cause Notices), fines penalties, suspensions revocations of licenses etc.
It is also learnt from the document that Enforcement Department of OGRA has taken actions against illegal activities/operations and developed SOPs (standard operating procedures) for LPG cylinder filling at LPG plants. The department has generated /prepared detailed accident reports with recommendations and also launched FIRs against culprits/violators.
While commenting on OGRA’s decision, official sources on anonymity said that the OGRA chairperson instead of strengthening the Enforcement Department has dismantled it and is allegedly interested to hire a third party for carrying out enforcement activities with this move. The third party, which is expected to be engaged by OGRA in future for enforcement, will be paid at cost of weakest stakeholders of the petroleum industry – consumers, they added.
Earlier, OGRA dismantled its Enforcement Department on January 5, 2018, due to increasing workload and optimum utilisation of manpower and put the entire responsibility of enforcement of regulation activities on the shoulders of Oil, CNG and LPG departments of the authority.
It is worth mentioning that establishing the Oil and Gas Regulatory Authority (OGRA) under the OGRA Ordinance 2002, was aimed at providing effective and efficient regulations, fostering competition, encouraging investment, protect the public interest and ensure level playing field within the petroleum industry.
