ISLAMABAD:(PAKISTAN) With about 3,000 CNG stations already functional, the Oil and Gas Regulatory Authority has allowed change of sites for new stations under a doubtful directive of the prime minister secretariat that would practically lift a January 2008 ban on CNG expansion.

On subsequent query from the ministry of petroleum and natural resources, the Ogra reaffirmed its decision that it would not allow change of site of a CNG station to a new location.

The decision would authorise over 3,000 provisional license holders to set up their stations at new sites despite disallowed earlier by the Ogra itself over the last two years for failing to make any progress on their existing sites. This happens at a time the government is seeking diversion of natural gas from CNG stations to power houses and domestic consumers to overcome severe gas shortage in the country. The two Ogra members – member gas and member oil-- who opposed the controversial decision and sought confirmation of the prime minister secretariat’s directive before a judgment, have been made dysfunctional by Ogra Chairman Tauqir Sadiq – a close relative of PPP senator Jehangir Badar. As a result the Ogra is now left with only two members (chairman and member finance) and has technically become ineffective because the rules require at least three members, including chairman and two members to constitute quorum. Documents available with Dawn suggest that in view of emerging gas shortage a meeting presided over by the then prime minister decided in January 2008 that “new CNG licences in the pipeline be held up”. CNG connection should not be given except to those who have already imported machines.” As a result, the Ogra has been disallowing setting up new CNG stations and no permission for change of site to a new location was granted on the grounds that it will be in clash with the condition of ban imposed by the government. On subsequent query from the ministry of petroleum and natural resources, the Ogra reaffirmed its decision that it would not allow change of site of a CNG station to a new location due to the fact that such a permission will be considered as a new license enabling the investor to undertake construction, import of machinery or apply for NOCs at a new site. The current dispute emerged when a PML (Q) member of the parliament from Bahawalpur Riaz Hussain Pirzada requested for change of site for a licence he had obtained for a different location but had not made any physical progress. The prime minister secretariat sought comments from Ogra. The request of the said CNG station was regretted in January 2010 and the prime minister secretariat was informed accordingly. In February, the PM secretariat wrote another letter to the Ogra that Chaudhry Gas Station be allowed to change its site in relaxation of existing policy and Ogra rules. The PM secretariat also desired that a rational policy be formulated for change of sites for CNG stations. Meanwhile, a number of other investors sought change of sites. On March 16, 2010, the Ogra considered the issue at a full authority meeting and because of difference of opinion among four members decided to seek comments of a former Ogra vice chairman to see if the PM secretariat was a policy directive as required under section 21 of the Ogra Ordinance. Rashid Farooq, the former vice-chairman, opined that the PM secretariat’s letter was “not a prime minister’s directive and keeping in view the earlier directives/policy of ban, the prime minister should be informed about the legal ramifications. He also noted that since hundreds of provisional licensees could not complete the requisite formalities for setting up of CNG station and could revive their cases under the proposed site change plan. Mr Farooq was of the view that change of site of any provisional license would practically mean issuance of fresh license enabling an investor to apply for fresh NOCs for the new site and open a floodgate for revival of 4,000 licenses. His considered opinion was that if the government wanted to issue any policy guidelines on relocation of existing operational or change of sites for provisional licenses where no progress had been made, policy guidelines under section 21 of the Ogra Ordinance be issued that should be based on a policy decision of an authorised forum like the cabinet or its economic coordination committee (ECC). However, within a week of the earlier meeting, the Ogra again discussed the issue in the light of the advice. Two members sided with former vice chairman’s view and opposed the relocation policy and expressed doubts if the prime minister’s letter was issued with authorised signatures of the relevant officer. Interestingly, the prime minister secretariat issued a general circular to all ministries and divisions that complaints were being received by the PM regarding fake letters on the letterhead of prime minister’s secretariat and hence all such doubtful instructions should be re-verified/reconfirmed from the secretariat. The Ogra authority meeting on March 19, considered the issue once again and vice-chairman Ogra and Member Oil opposed allowing relocation to any provisional licensee, whereas the chairman and member finance supported allowing relocation to Mr Riaz Pirzada and other licensees as well. The chairman cast his tie vote and decided to allow change of locations for the new sites despite notes of dissent recorded by two other members. Since the matter had become highly controversial by then, the chairman Ogra allowed the two dissenting members to seek reconfirmation of the PM secretariat’s letter. However, when they sought reconfirmation in writing, they were made dysfunctional by the chairman through a letter. He also appointed a private lawyer Rai Shafiq Ahmed Bhatti to investigate the matter. Interestingly, only the Federal Public Service Commission has the powers to probe into misconduct of senior government and regulatory body officials. The two members have contested the orders saying the chairman was first among equals and did not have powers under the law to proceed against any member because the Ogra decisions could only be taken through majority. The sources said the two members have demanded of the chairman to withdraw his alleged illegal orders or else they would be left with no option to approach Supreme Court of Pakistan for adjudication.