OGRA awaits LPG price approval

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) is awaiting an approval from the federal cabinet to assume its new role of regulating the prices of liquefied petroleum gas (LPG), an official said on Friday.   

The LPG (Production and Distribution) Policy, approved last year, revoked the power of LPG producers to determine the gas prices according to the market dynamics. 

“This needs amendments into the (de-regulation) law… so that OGRA is empowered to enforce the prices,” the official said on condition of anonymity. “The cabinet division is yet to approve the amendments.”

Petroleum ministry sent a summary to the Cabinet with regard to amendment in LPG Rules 2001, “and after approval OGRA will be in a position to implement LPG Policy 2016 in its letter and spirit.”

Notwithstanding, the official said the regulator is expected to unveil the new prices of LPG by mid of next week. 

“We will unveil the reasonable LPG prices by next week as per the demand of the ministry of petroleum and the market dynamics,” he said.

On February 10, ministry of petroleum and natural resources proposed local LPG base stock price at 59,190 per metric tonne and consumer price at Rs93,500 per metric tonne, which is equal to Rs1,150 per 11.8 kilogramme per cylinder.   

“While the codal formalities with respect to regulation of LPG pricing were in transition, the Lahore High Court, in a case of Gold (a LPG firm) versus Pakistan Petroleum Limited directed the parties on January 27 to appear before OGRA,” the official said. “OGRA held a hearing and the requisite decision shall be submitted in the court in the due course of time.”

OGRA is still gleaning opinions of the LPG producers on what should be the price structure.

The regulator recently sent a letter to 14 LPG producers and marketers around the country, asking them to furnish financial details to determine the latest price.

“Under Section 30 of OGRA Ordinance 2002, you (LPG     firms) are directed to provide the track record of LPG base stock prices charged from time to time and annual reports/audited accounts in respect of LPG business for the last three financial years within two days of receipt of this letter,” read the letter.