The News reported that the Lahore High Court restrained the Oil and Gas Regulatory Authority and the 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.

Sources said that the LPG marketing companies along with the LPG Association of Pakistan had moved the court, challenging provisions in the contentious policy which has received a lot of flak from the LPG and public sector.

The policy, which was made in secrecy without stakeholders input, makes it mandatory on the LPG marketing companies to purchase 20% 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 the public sector companies.

The court has restrained OGRA and the ministry from taking any coercive action against the LPG marketing companies, as well as prohibiting OGRA from notifying a higher price of LPG to match with the international prices, till the next date of hearing which is scheduled for October 5th 2011.

Mr Belal Jabbar spokesman of LPGAP said that “This is good news for LPG consumers nationwide. The policy has been formulated with designs to bankrupt and bleed the private sector, restrict competition and create a public sector monopoly paid for by the LPG consumers.”

Mr Jabbar said that LPGAP had no other choice, but to approach the august court since all requests for meetings with OGRA and the ministry were declined. The ministry’s combative stance towards the industry is deeply regrettable. We are also dismayed that the autonomy of the regulatory authority, OGRA has been severely compromised. None of this augurs well for the sector.”

(Sourced from www.thenews.com.pk)