Karachi, November 25, 2024 – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the introduction of updated laws for the Oil & Gas Regulatory Authority (OGRA) to address challenges in the LPG supply chain. He emphasized the need for a regulatory framework that is fair, inclusive, and aligned with the realities of the industry to benefit all stakeholders and consumers.
Sheikh highlighted that the current OGRA law excludes retailers and only extends to distributors, which has contributed to frequent accidents at the retail level. He stressed the importance of bringing all players in the LPG industry under the regulatory umbrella, requiring them to obtain licenses and adhere to national safety standards. Additionally, distributors should be legally obligated to share supply data with retail outlets, ensuring accountability throughout the supply chain.
During a meeting at FPCCI’s Federation House, Masroor Khan, Chairman OGRA, and Syed Hassan Ali Naqvi, Commissioner Karachi, joined industry leaders to discuss LPG-related issues, including supply chain enforcement, pricing, quality control, and safety standards. Sheikh noted that this was OGRA Chairman’s third visit to FPCCI in 2024, underscoring the urgency of these concerns and the commitment of stakeholders to resolve them.
Sheikh also called for strict regulation of LPG filling stations and shops, as well as standardized cylinders with assured quality. He criticized unregulated and unlicensed players for endangering lives and livelihoods while creating an uneven playing field for compliant businesses.
Saquib Fayyaz Magoon, Senior Vice President FPCCI, emphasized that as Pakistan’s population grows and natural gas reserves dwindle, the country must prepare for rising LPG consumption. He suggested leveraging this challenge by attracting foreign direct investment (FDI) and fostering public-private partnerships in the LPG sector. He also proposed joint ventures for cylinder manufacturing, technology transfers, and setting up certification and audit labs.
Ali Haider, Convener of FPCCI’s Central Standing Committee on LPG Industry, pointed out that unlicensed players are bypassing regulations, gaining an unfair advantage over compliant businesses. He also urged OGRA to resolve the longstanding issue of LPG margins in consultation with industry stakeholders.
Masroor Khan noted that LPG’s share in Pakistan’s energy mix has doubled to 2% and will continue to grow, necessitating the development of local manufacturing facilities for cylinders and other equipment. Commissioner Naqvi added that while efforts are underway to enforce regulations, an updated OGRA law is essential to enhance safety and accountability.
