LPG Share in National Energy Mix Doubled Business Community Demands New & Realistic OGRA Law Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has demanded that the country needs a new law for its
Oil & Gas Regulatory Authority (OGRA) to reflect the ground realities of LPG supply chain in the country
– and, make the regulatory environment facilitative, enabling and fair to all the stakeholders and
consumers.

Mr Atif Ikram Sheikh elaborated that OGRA law does not include retailers and ends with the distributors;
and, that is the reason that so many accidents are happening at the retail level. Distributors should also be
bound law to by provide data of their supplies to the retail shops. We need to bring all industry players
under the law; make them obtain required licenses and follow the national regulations on LPG, he added.

It is pertinent to note that Mr. Masroor Khan, Chairman OGRA and Mr. Syed Hassan Ali Naqvi,
Commissioner Karachi, visited the FPCCI Head Office at Federation House, Karachi, on Monday to
discuss the issues pertaining to enforcement of supply chain, pricing, storage, quality control and health,
safety & environment regulations and standards set out for the LPG sector.

Mr. Atif Ikram Sheikh apprised that it was OGRA Chairman’s third meeting in FPCCI during 2024 and it
manifests the criticality of the issues and the seriousness of stakeholders to find solutions to them. OGRA
Chairman was also accompanied by three senior executive directors of the institution as well.

Mr. Atif Ikram Sheikh maintained that FPCCI wants OGRA to control the unregulated and unlicensed
players of the LPG industry; as the unregulated sector is playing with the lives and livelihoods of the
consumers and businesses in Pakistan. Additionally, there should be strict regulations for LPG filling
stations or LPG shops to open and operate; coupled with strict standardization of LPG cylinders and their
quality assurance.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, highlighted that, in the context of rising population and
depleting natural gas reserves at the same time, Pakistan should be prepared to deal with ever-increasing
LPG consumption in the country. We can turn this challenge into an opportunity by attracting foreign
direct investment (FDI) into LPG industry in collaboration with the private sector of the country, he added.

Mr. Saquib Fayyaz Magoon explained that Pakistani businessmen can have joint ventures (JVs); can
establish collaborative cylinder manufacturing factories; make transfer of technology possible for the
country and set-up certification, validation and audit labs for the LPG industry. We also need to ponder
over the data that the petroleum industry imports upwards of $8 billion annually and exports only $200
million – and, how can we achieve some form of import substitution one way or the other, he added.

Mr. Ali Haider, Convener of FPCCI’s Central Standing Committee on LPG Industry, stressed that only the
licensed LPG industry players are following the law, regulations and standards; and, the unlicensed are
having an advantage over the law-abiding players. He added that LPG margins issue is lingering on since
2016; and, now is the time that OGRA makes a mechanism to resolve the issue in consultation with the
business community

Mr. Masroor Khan, Chairman OGRA, informed the session that the share of LPG in the national energy
mix has doubled from 1 percent to 2 percent and it is expected to be rising steadily over the many years to
come. We need to have world-class cylinders, bowser trucks and other related equipment manufacturing
facilities in the country to match up to the fast multiplying demand, he added.

Mr. Syed Hassan Ali Naqvi, Commissioner Karachi, noted that, despite the enormous efforts of the law
enforcement machinery and administrative departments, the government is profoundly concerned due to
LPG-related accidents and loss of life. This is work in progress and we have made hundreds of shops to
follow the law by now. Additionally, provincial ombudsman also recommends that OGRA law needs to be
updated to make it more powerful, applicable and able to enforce the safety standards.