ISLAMABAD: The Liquefied Petroleum Gas (LPG) industry and the government have reached an accord to raise the inspection fee of LPG installations amid worries over fresh rules issued by Department of Explosives.
Due to the issuance of new rules by the Department of Explosives has impeded investment in the LPG sector, reported Express Tribune.
Previously, the industry was paying Rs20,000 as inspection fee for auto-filling stations, Rs25,000 for inspection of the plant, Rs5,000 for gas storage for self-consumption and Rs5,000 for examining gas transportation.
The revised fee now stands at Rs25,000, Rs35,000, Rs15,000 and Rs7,000. The industry is being compelled to pay the same fee twice to two different departments.
New rules devised by the Department of Explosives of the Ministry of Industries and Production (MoIP) has seen the hiring of its own third-party inspectors aside those Oil and Gas Regulatory Authority (Ogra) has.
Consequently, the LPG industry is compelled to pay the fee to Ogra inspectors and to third-party inspectors of the explosives department.
The rules of Ogra and the explosive department before 2010 were similar. In 2010, the explosives department brought in the Mineral and Industrial Gases Safety Rules which entitled the chief inspector of explosives to scrutinize, test and monitor compressed natural gas (CNG), LPG and petroleum operations.
The new rules introduced by the explosives department which were markedly different from the ones issues by Ogra, which were revised according to international standards.
As a result, the rules ended up being challenged in the Lahore High Court by the LPG industry contending these regulations were deterring new investment in the sector.
Industry officials stated the rules devised by the explosives department provide unrestricted powers to its chief inspector and impedes new investment due to new conditions for the capacity expansion of LPG companies like safety distance.
