Govt to invite applications for LPG auto gas stations

The government will soon invite applications for setting up new Liquefied Petroleum Gas (LPG) stations as well as converting the existing CNG filling stations in the country. Acting Chairman of Oil and Gas Regulatory Authority (OGRA) Mansoor Muzaffar said this while speaking at LPG Distributors Association conference here on Monday.
The government has decided to promote LPG as auto fuel in the country as more than three million vehicles have converted to CNG. The shortage of domestic gas supplies has forced the government to promote alternate fuels. He said that the government has drafted a new LPG policy that would be implemented after approval from the Economic Coordination Committee (ECC) of the cabinet. The commercial vehicles would also be converted to LPG, he added.
REGISTRATION FEE WITHDRAWN
He announced that the Rs25,000 registration fee proposed by OGRA to register LPG distributors has been withdrawn despite OGRAs earlier claims that the fee was necessary for effective regulation and saftey. Earlier the distributors had opposed the fee and demanded that it be removed. They had warned that if they were forced to give the fee they would go on strike.
Acting chairman OGRA asked LPG distributors to stop selling LPG from their premises. He warned that strict action would be taken against anybody found involved in the activity. OGRA has sought list of authorized distributors of marketing companies to be registered in order to ensure safety.
He said the OGRA wanted to extend relief to common man by resolving problems of the distributors association which was performing instrumental role in this regard.
STRICT SAFETY RULES IMPOSED
However, he added, the distributors were needed to strictly observe the checklist prepared by the authority to ensure safety. He asked the distributors to register complaints with the authority against marketing companies that were not returning security fee to them, adding the authority would redress and could refer cases to the FIA.
Referring to complaint against OGRA’s cold response, the acting chairman said OGRA doors were open to resolve LPG distributors’ and all the authority officials were supposed to cooperate as they were drawing salaries from tax payers’ fund.
The acting chairman sought two weeks’ time to resolve demands including raise in commission from Rs70 to Rs100 on 11.8 kg cylinder, announcement of LPG prices one in month, ban on manufacturing small cylinders to discourage decanting, bringing uniformity prices of imported and local LPG etc.
CATERING TO LOCAL DEMANDS
The conference was informed by OGRA that the domestic production of LPG had declined from 1,550 tonnes per day to 1,100 tonnes per day. Due to this reason there was shortage of supply in the market. The chairman also administered oath to chairman distributors association, Muhammad Irfan Khokhar and his cabinet for another five years term. Khokhar said that the new LPG policy envisages that the local marketing companies would have to import 25 percent of their allocated quota. Its implementation would help curb shortages of LPG in the country. He appreciated the acting chairman for extending his support in resolving the issues of the distributors. The association also lauded the draft of LPG production and distribution policy 2011, which aims to increase LPG supplies through indigenously produced and imported product to cater to rapidly increasing demand and stabilize prices. The other speakers also discussed suggestions for working out an effective LPG price mechanism.