LPG bowsers: OGRA refutes media report, ‘justifies’ actions of Member Gas

ISLAMABAD: The Oil and Gas Regulatory Authority has vehemently refuted and categorically rejected a media report titled “OGRA Member Gas ‘delays’ bringing LPG bowsers to tax net”, terming the story “incorrect, malicious and misleading”.

In response to the above-mentioned story Published in Pakistan Today on 3rd Feb 2020, the authority stated, “Although OGRA ordinance have been in force and affect since year 2002 which required regulation of midstream and downstream sectors, OGRA first time took the cognizance of license of LPG transportation activity in the year 2011-12 i.e. over nine years ago. However, due to cumbersome and costly licensing procedure and that too for individual LPG bowser, only three LPG bowers could be granted license. The non-cooperation and lack of response from the LPG Marketing Companies and private LPG bowsers speak volumes about how difficult it was for the LPG bowser owners to seeking licenses for each individual bowser, even when OGRA reduced the license fee from Rs100,000 to Rs25,000 per bowser.”

OGRA said the incumbent Member Gas, who is a qualified professional and has long extensive experience of oil and gas industry, reviewed the long outstanding LPG bowser licensing matter and identified loopholes in the lengthy procedure and mechanism for individual licensing of LPG bowsers by OGRA.

“It may be borne in mind that three tier certification and licensing mechanism of each LPG bowser is already in place. LPG Bower Manufacturers in Pakistan are already certified by OGRA. Once LPG Bowser is manufactured, it is subject to the license from the Chief Inspector of Explosives (CIE) and also relevant Road Transport Authority (TPA). After all the three-tier certification from different statutory departments in place, existing procedure also requires a certification from an independent third party appointed by OGRA.

“The incumbent Member Gas advised streamlining the regulatory framework to pave the way for bringing all LPG bowsers into regulatory network, in total disregard thereof, LPG Department issued directions to the industry to get the bowsers licensed within 15 days after which companies may not be able to uplift/transport/decant LPG within the country, which may seemingly cause damage to the country by bring the entire LPG logistics and supply operations to a standstill in severe weather condition when the demand for LPG was already at its peak and supply too short. This would have caused strikes, riots and road blockages throughout the country. The matter is being investigated by the Authority to fix responsibility on the responsible officials.

REPORTER’S RESPONSE

According to Ahmad Ahmadani, the reporter who had filed the above-mentioned story, OGRA has rebutted the news item “in a generalized fashion”.

The unilateral action of the Member Gas has in fact undermined the integrity and efficacy of the LPG department by holding back the departmental initiative.

It is pertinent to mention that the authority can review, rescind, vary or alter its own decision only through section 13 of OGRA Ordinance, 2002. But, in this case one individual member on its own cannot and should not dislodge the valid and unanimous decision of its full authority, which was earlier taken in the regulatory meeting No. 19 of 2019 held on August 07, 2019.

It is a matter of record that none of the stakeholders sought any review of this very decision. However, the incumbent Member Gas is welcome to furnish the review proceeding of the decision to this newspaper and which will be published likewise.

Else, the impugned decision of the Member Gas shall otherwise be deemed as malafide, malicious, and non-est and will be considered as an attempt to thwart the relentless efforts of the present government to ensure the documentation of the economy in the country.

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