CNG crises: OGRA plans to shutdown pumps in residential areas

Sources say the authority is going to issue notices to CNG pumps.


Zafar Bhutta July 01, 2013
Sources said Ogra had also proposed to the ministry of petroleum to place a ban on the use of CNG in private services vehicles and limit the use of CNG to public transport. PHOTO: FILE

ISLAMABAD: In view of the gas crisis and rising incidents of CNG cylinder blasts, the Oil and Gas Regulatory Authority (Ogra) has decided to launch a drive to wipe out hundreds of CNG stations operating in residential areas.

At present, over 3,000 CNG stations are operating in the country and majority of them are located in residential areas.

Sources told The Express Tribune that the regulator would serve notices on residential areas’ CNG stations Monday (today) – a move that would lead to closure of these CNG stations across the country.

Ogra would issue notices to CNG stations near mosques, schools and hospitals in residential areas and seek explanations as to under which policy these outlets were established and what measures they had taken to ensure safety of the people living around. The sources said Ogra had decided to suspend the licences of these stations if they failed to satisfy the authority.



Ogra has already directed all transport authorities to launch a crackdown on vehicles fitted with uncertified CNG or LPG cylinders. In May Ogra imposed a ban on vehicles in which CNG cylinders were fitted beneath the seats and disconnected gas connections of 22 CNG filling stations on charges of violation. However this ban did not apply on vehicles with CNG cylinders fitted on roofs.

Sources said Ogra had also proposed to the ministry of petroleum to place a ban on the use of CNG in private services vehicles and limit the use of CNG to public transport, in view of gas crisis and tragic incidents of cylinder explosions.

The regulator said courts had also taken notice of the loss of lives and property in such incidents and Ogra had requested chief secretaries, transport secretaries and the four provinces’ inspectors general of police to take action against uncertified CNG cylinders installed beneath passenger seats and the people involved in installing dubious CNG kits and fittings.

As part of its energy policy, PML-N led government has decided to phase out CNG sector to divert gas to the power sector for overcoming energy crisis. The petroleum ministry has already proposed to bring CNG prices at 85% parity of petrol to discourage its use in auto sector. However the government has still to take the final decision.

“The CNG sector in Pakistan uses over 300 million cubic feet (mmcfd) gas  per day; whereas government also needs to focus on captive power plants which, being inefficient, result on gas wastage,” an official said adding that this sector used 450 mmcfd gas which National Accountability Bureau (NAB) had termed a criminal act.

“The government should impose a ban on provision of gas to new villages on political grounds till the discovery of new gas reserves,” official added.

Published in The Express Tribune, July 1st, 2013.

COMMENTS (8)

yawar | 10 years ago | Reply

@ all..............worst ever decision of ogra..(if happen ). how can ogra now plans to demolish the stations in residential ares if OGRA itself had given approval to them for having CNG station at that particular site......OGRA should have not given Green signal to them at the very first moment..........what about the investment of those stations.....( would OGRA give them their investment back )......? its like someone deposite a money in a bank and on the second day bank says your deposited money has gone?......would you or anyone allow it happen to your assest? same is the case with cng stations which are setup at about 60-70 million and now the ogra says "" we are planning to shut them """...does this mean that there are no courts in courntry? it means that people would go courts for protection of their investments.as their investments are backed by governement ( in the form of licence period )..........before you think anything about anyone apply it to yourself first............Would you allow your asset to be taken up by governement ? ( whatever the reason may be)

Khizer Jalal | 10 years ago | Reply At First OGRA OGRE whatever it is, allowed them to build those gas stations. and now they have ordered to demolish it. its just the way the roads are constructed, and then later demolished to put in water pipes. :/
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