Multiple authorities and overlapping laws.

The energy crisis in Pakistan has not emerged overnight. Such a crisis has been systematically created through inappropriate planning. Institutions are created without reducing the functions or transferring the functions of previous institutions to new ones.

One such example is the continuing role of the Department of Explosives on the midstream and downstream operations of the oil and gas industry, despite the subsequent creation of the independent regulator Oil and Gas Regulatory Authority (Ogra) for the very said purpose.

As an immediate measure, recently, the government has rightly emphasised the promotion of LPG business by directing the two predominantly public sector gas utility companies to also import and distribute LPG on a larger scale to mitigate the issue of natural gas shortage as far as possible.

Although LPG is the most expensive fuel, due to its economical moveability and short switching time, it is widely baptised as a poor man's fuel because of its ability to reach those living in far-flung areas with no natural gas distribution network. LPG, otherwise, is the most expensive fuel in terms of its cost per metric million British thermal units as compared to natural gas, CNG, kerosene, or RLNG.

Despite the government's efforts to increase LPG supplies before the start of the last winter season, no significant headway could be achieved. Local LPG production is limited, which can not be increased without additional sources of rich gas within the country.

The convoluted process of improving gas supply takes several years, allowing incidents of corruption to increase manifold

Apart from the ever-increasing foreign exchange issues, handling, bottling and distribution of additional volumes of LPG with the existing storage, transportation and distribution network is a serious bottleneck which cannot be removed swiftly. This is due to the multilayered, overlapping and non-conducive regulatory processes and approvals required to establish new bottling plants, manufacture cylinders, approval of LPG transport vehicles, storage tanks, distributors etc.

Ogra is currently acting as an umbrella regulator, which is mandated for the licensing of regulated activities, among other things, relating to the LPG/CNG sectors. As per LPG rules, almost all international standards are prescribed, which are to be followed by the stakeholders throughout the LPG value chain, and Ogra is to ensure their compliance.

LPG and CNG sectors operate in midstream...