The Oil and Gas Regulatory Authority (OGRA) regulates the LPG sector under the OGRA Ordinance, 2002, and the LPG (Production & Distribution) Rules, 2001. Since its inception on 15th March 2003, OGRA has been overseeing the construction and operation of LPG facilities, including auto refueling stations, in accordance with federal policies. Liquefied Petroleum Gas (LPG) is an essential, clean, and efficient fuel used widely in various sectors, including automotive refueling. The establishment of LPG auto refueling stations is a regulated activity requiring compliance with specific legal and procedural requirements laid out by OGRA.

Categories of Licenses

OGRA issues several types of licenses related to LPG, including those for:

  • Production and Extraction Facilities
  • Storage and Filling Plants
  • Auto Refueling Stations
  • Air-Mix Plants

Requirements for Obtaining a Licence for LPG Auto Refueling Stations

  1. Eligibility and Application Submission
    • Any company, defined broadly to include joint-stock companies, partnerships, business trusts, or organized groups, whether incorporated or not, can apply.
    • The application must be submitted in triplicate using the form set out in Appendix II of the LPG Rules, 2001, accompanied by a non-refundable processing fee of Rs. 100,000/-.
  2. Documentation Required
    • Company Registration: Attested copy of the company’s registration from the Securities and Exchange Commission of Pakistan (SECP).
    • Site Details: Complete site address and exact location details, including Khasra, Khewat, Khatooni, and Mouza numbers.
    • Authorized Signatory: The name and signature of the authorized signatory, along with attested copies of National Identity Cards of owners or partners.
    • Work Plan: Detailed proposed work plan indicating storage capacity and the number of dispensers to be installed.
    • Undertaking: An undertaking on judicial stamp paper ensuring the site does not fall in residential areas and maintains the required distance from other refueling stations.
    • Site Verification Fee: Pay Order or Bank Draft of Rs. 20,000/- for OGRA’s third-party site verification.
    • Map: A certified map clearly showing the exact location of the refueling station.
    • Affidavit: An affidavit regarding compliance with gas utility companies’ regulations.
  3. Construction Licence
    • The construction licence is valid for one year, during which the applicant must complete the infrastructure as per the submitted work plan.
    • Pre-commissioning inspection must be requested within the stipulated timeframe, and third-party inspectors will be appointed to ensure compliance.
  4. Post-Construction Requirements
    • After the third-party inspection, the applicant must provide No Objection Certificates (NOCs) from the District Coordination Officer (DCO), Environmental Protection Agency (EPA), and the Explosive Department.
    • Upon fulfillment of these requirements, the complete case is submitted to OGRA for consideration and grant of a marketing licence.

Legal and Procedural Framework

The application and licensing process is governed by the LPG (Production & Distribution) Rules, 2001. Relevant provisions under Rule 7 stipulate that OGRA must decide on the grant or denial of a licence within ninety days of receiving a complete application.

Conclusion

Establishing an LPG Auto Refueling Station involves a detailed and regulated process to ensure safety and compliance with federal regulations. At Josh and Mak International, we provide comprehensive legal assistance to navigate this complex procedure, ensuring that all regulatory requirements are met efficiently.

For further guidance and assistance, please contact our legal experts at Josh and Mak International. We are committed to facilitating your business endeavors in the LPG sector with expert legal support and advice.

By The Josh and Mak Team

Josh and Mak International is a distinguished law firm with a rich legacy that sets us apart in the legal profession. With years of experience and expertise, we have earned a reputation as a trusted and reputable name in the field. Our firm is built on the pillars of professionalism, integrity, and an unwavering commitment to providing excellent legal services. We have a profound understanding of the law and its complexities, enabling us to deliver tailored legal solutions to meet the unique needs of each client. As a virtual law firm, we offer affordable, high-quality legal advice delivered with the same dedication and work ethic as traditional firms. Choose Josh and Mak International as your legal partner and gain an unfair strategic advantage over your competitors.

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