FPCCI calls for overhaul of law to regulate LPG supply

Industry leaders push for standardised regulatory framework to address safety risks

KARACHI:

Federation of Pakistan Chambers of Commerce & Industry (FPCCI), President, Atif Ikram Sheikh has urged the government to reform the Oil & Gas Regulatory Authority (OGRA) law to align with the realities of the liquid petroleum gas (LPG) supply chain in the country. The proposed updates aim to make the regulatory environment equitable, effective, and safer for all stakeholders and consumers, according to an FPCCI press release issued Monday.

Sheikh highlighted that the current OGRA framework excludes retailers, focusing solely on distributors. This oversight has led to safety hazards at the retail level. "Distributors must be legally required to provide data on their supplies to retail outlets. All industry players must be brought under the law, obtain proper licenses, and comply with national LPG regulations," he stated.

The remarks came during a meeting at FPCCI's Federation House, attended by OGRA Chairman Masroor Khan, Karachi Commissioner Syed Hassan Ali Naqvi, and senior OGRA executives. Discussions covered enforcement of supply chain standards, pricing, storage, and health and safety regulations.

Sheikh highlighted that this marked OGRA chairman's third meeting at FPCCI in 2024, reflecting the critical importance of the issues and the stakeholders' commitment to finding effective solutions.

FPCCI's leadership maintained the need for stricter oversight to curb unregulated and unlicensed LPG operators, which jeopardise consumer safety. They proposed standardisation and quality assurance measures for LPG cylinders and filling stations, urging OGRA to take swift action.

Addressing the rising demand for LPG amid depleting natural gas reserves, FPCCI Senior Vice President Saquib Fayyaz Magoon suggested turning this challenge into an opportunity. "We should attract foreign direct investment into the LPG sector through joint ventures, establish cylinder manufacturing units, and set up certification and audit labs to modernise the industry," he said.

Ali Haider, Convener of FPCCI's LPG Committee, called for resolving longstanding issues, including margins disputes, while ensuring fair competition between licensed and unlicensed players.