Govt to Crackdown on Undocumented LPG Imports

As part of the proposed overhaul of Pakistan's liquefied petroleum gas (LPG) sector, the administration has outlined measures to curb undocumented imports, tighten quality controls and improve safety throughout the supply chain.

Key points

• The administration additionally proposes amendments to Sections 285 and 286 of the Pakistan Penal Code to growth penalties and produce relevant offences non-bailable.
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• The proposed guidelines direct OGRA to introduce quality testing at land entry points through HDIP by June 30, 2027.
• The guidelines additionally propose establishing NEPSA satellite offices and HDIP/PCSIR laboratories at land entry points by June 30, 2027.
• Around 2, 000 LPG bowsers are at present operating in the country, of which approximately 800 are stated to comply with OGRA/NEPSA standards.

For context, the Cabinet summary raises reservations concerning undocumented LPG imports, inadequate quality testing and unsafe handling practices.

It estimates that more than half of the country's LPG supply enters through land crossings, where testing facilities are at present unavailable. OGRA and HDIP inspections at Taftan have reportedly discovered substandard product.

Meanwhile, the document refers to repeated explosions caused by decanting at border crossings without adequate safety infrastructure, resulting in more than 60 fatalities since 2020. It additionally estimates that 56 percent of LPG bowsers are unlicensed. Govt to Deregulate LPG Pricing, Introduces Targeted Subsidies.

While the administration has been unable to accurately capture the volumes entering through informal channels, undocumented LPG inflows evade sales tax, Petroleum Levy and customs duty.

Notably, the proposed guidelines direct OGRA to introduce quality testing at land entry points through HDIP by June 30, 2027. OGRA will additionally be required to audit licensees' sales volumes against their licensed storage, cylinder circulation and filling capacity, with penalties, including licence cancellation, for non-compliance.

While bowser-to-bowser transfers will be prohibited, cylinder filling will be restricted to licensed plants. Cylinder standards will be strengthened through embossing and barcoding, a ban on unregistered empty cylinders and periodic requalification of manufacturers.

Meanwhile, the guidelines additionally propose establishing NEPSA satellite offices and HDIP/PCSIR laboratories at land entry points by June 30, 2027. After that date, LPG volumes will not be allowed to enter through any port without spot testing.

For context, the administration additionally proposes amendments to Sections 285 and 286 of the Pakistan Penal Code to growth penalties and produce relevant offences non-bailable. OGRA and FBR Customs will jointly work to measure and control undocumented inflows.

Around 2, 000 LPG bowsers are at present operating in the country, of which approximately 800 are stated to comply with OGRA/NEPSA standards. Enforcement action against non-compliant bowsers is proposed to remain suspended until June 30, 2027, allowing stakeholders time to transition towards compliance. Pakistan-Bound LNG Tanker Hit Near Hormuz by Unknown Attacker.

In practice, the proposed framework requires OGRA to strengthen health, safety and environmental enforcement throughout the supply chain through regular audits, penalties, suspension of licences and cancellation of licences in case of violations.

OGRA may additionally convene product review meetings to assess supply-chain conditions, import aims and winter stock requirements, and may direct state-owned importers and marketers to arrange specific volumes to maintain the demand-supply balance.

When limited piped gas availability could place further pressure on households dependent on cylinders, the Petroleum Division has emphasised that uninterrupted LPG imports are particularly significant ahead of winter. The summary notes that the current geopolitical situation has rose vulnerabilities in energy supply chains, making reliable imports essential to avoid shortages and potential public distress. Stay Connected with ProPakistani.

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For now, govt to Crackdown on Undocumented LPG Imports remains the part of the story worth watching, and further updates are likely as more details are confirmed.