The Honorable Lahore High Court on Thursday restrained the Oil and Gas Regulatory Authority and Ministry of Petroleum and Natural Resources from taking any coercive action against LPG marketing companies pursuant to the controversial LPG Production and Distribution Policy, 2011. LPG marketing companies along with the LPG Association of Pakistan (LPGAP) had moved the Honorable Court challenging provisions in the contentious Policy, which has received a lot of flak from the LPG sector and consumers. The Policy, which was made in secrecy without stakeholder inputs, makes it mandatory on LPG marketing companies to purchase 20 percent of their supplies from LPG importers and brokers, imposes a Petroleum Development Levy on local LPG production to make LPG imports viable, and gives monopoly rights over the LPG sector to public sector companies.
The Honorable Court has prohibited OGRA from notifying a higher price of LPG to match international prices until the next date of hearing, which is scheduled for Oct. 05. LPGAP Spokesman Belal Jabbar said, “This is good news for LPG consumers nationwide, since this Policy has restricted competition, and create a public sector monopoly paid for by LPG consumers. LPGAP had no choice but to approach the august Court since all requests for meetings with OGRA and the Ministry were declined”.
