Legislators blame OGRA for gas crisis

NA panel considers referring illegal CNG licences case to FIA.

ISLAMABAD:

While terming the Oil and Gas Regulatory Authority (Ogra) ‘a state within a state’, parliamentarians slammed the regulator and blamed it for the current gas crisis on Thursday.

MNA Begum Shehnaz Sheikh during the meeting of the sub-body of the National Assembly’s (NA) Standing Committee on Petroleum and Natural Resources alleged that Ogra had been involved in massive malpractice regarding issuance of CNG licences. “I can prove that Ogra officials have even been involved in giving provisional licences in back dates,” Sheikh said.

The sub-body was discussing the illegal issuance of licences to 462 CNG stations despite a ban imposed new CNG stations.

Restructuring of the regulator should be made to ensure transparency in its functions including verification of its officials’ degrees, Sheikh said.

Another member of the sub-committee MNA Chaudhry Muhammad Barjees Tahir observed that there were many cases in which No Objection Certificates (NoCs) were not sought by Ogra, violating Prime Minister Yousaf Raza Gilani’s directives. There would have been no gas crisis if Ogra had not issued illegal CNG licences, he added.

It was one of the options that were discussed in a meeting of the sub-committee of the National Assembly’s (NA) Standing Committee that met on Thursday to probe the issuance illegal CNG licences despite a ban.

The parliamentary panel mulled over sending the case of illegal licence issuance to the Federal Investigation Agency (FIA) for investigation. It was one of the options that were discussed in the meeting.

It was observed during the meeting that the ban was imposed to overcome the gas crisis but Ogra continued issuing licenses. Ogra has also been involved in relocation of CNG stations sites.

Petroleum Secretary Ijaz Chaudhry said that the CNG sector is the largest tax paying sector in the country and therefore the government had no intention to completely close it. However, there should be no further expansion of this sector, he said.

Ogra as well as gas distribution companies are equally responsible for the expansion of CNG stations, Chaudhry said.

He said that he refused to accept pressure from ambassadors of different countries to relax import of CNG cylinders and kits. He also said that gas connections to new towns and villages should be banned to avoid gas crisis.

All Pakistan CNG Association (APCNGA) Ghyias Abdullah Paracha said that the government had formed a policy in 2007 to encourage the use of gas in CNG stations. We have given a proposal to the petroleum ministry to save gas and diverted it to CNG stations, he said adding that closure of 561 CNG stations is a worrying sign for investors.

There is no mention of CNG stations closure for three months in any agreement, he said adding that CNG stations had been closed for 158 days in a year due to gas load shedding and gas supply should be restored immediately to them.

Published in The Express Tribune, March 9^th, 2012.