OGRA continues to function without a quorum, raises legal challenges

APCNGA chairman says oil and gas sector is suffering, foreign investment has stopped

ISLAMABAD: The All Pakistan CNG Association (APCNGA) said Tuesday that Oil and Gas Regulatory Authority (Ogra) continues to work with an incomplete quorum, which is resulting in legal and regulatory challenges in the petroleum sector.

Business activities in the oil and gas sector have been suffering due to lack of compulsory quorum in Ogra while foreign investment has also stopped, said APCNGA Central Chairman Ghiyas Abdullah Paracha.



He said that the overall situation is discouraging as the post of member gas is lying vacant while the slot of member oil has not been filled for the past one and a half year.

Paracha said that all the vacant posts should be filled or the existing members should be allowed to take critical decisions to save the energy sector from problems.

The CNG sector is facing colossal losses as dozens of CNG stations have been closed, said the official, adding that 250 petrol pumps have stopped operations while appeals against the decision of different government bodies are not being heard.

“Heavy fines are being slapped on the owners of filling stations,” he added.

Many owners have imported new machinery but they are not allowed to install it. Meanwhile, the issuance of new licences has also been stopped, which has created uncertainty in the market, he added. The APCNGA chairman said that the country lacks oil storage capacity due to which some companies have established oil storage facilities but they are not being allowed to operate.



Pricing of LNG and CNG also awaits a decision, which is hindering reduction in the price of both fuels.

Many foreign companies have approached Ogra in a bid to invest in Pakistan but no decision has been taken on their applications, he said.

Published in The Express Tribune, March 23^rd, 2017.

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