OGRA proposes Rs10 million fine for oil companies involved in illegal petroleum stocking and distribution

The Oil and Gas Regulatory Authority (OGRA) has recommended severe penalties for those involved in the illegal storage, handling, and distribution of petroleum products in Pakistan. OGRA has proposed amendments to Sections 285-B and 285-C of the Pakistan Penal Code to address this issue.

According to OGRA’s proposal to the Cabinet Division, individuals or oil marketing companies found guilty of unauthorised storage and handling of petroleum for the purpose of sale, resale, transport, or distribution to consumers could face up to ten years in prison or a fine of up to Rs10 million. The regulatory body emphasises that such unauthorised activities have detrimental effects on society, particularly innocent individuals who may unknowingly be exposed to unsafe petroleum products.

The proposed amendments aim to address the existing gaps in the legal framework related to the handling of explosive substances, fire or combustible materials, and machinery that can cause harm to human life and property damage. While Sections 285, 286, and 287 of the Pakistan Penal Code already deal with these issues, they do not specifically cover the illicit sale, distribution, production, storage, or handling of petroleum products.

To rectify this, OGRA has recommended the insertion of Section-A 285-B and 285-C in the Pakistan Penal Code. These new sections would serve to safeguard human life and property by imposing strict penalties for unlicensed handling of petroleum products and explosive substances, as well as unauthorised manufacturing of machinery and equipment.

The proposed amendments align with the constitutional provisions of Pakistan, which ensure that no person shall be deprived of life, liberty, or property except in accordance with the law. By introducing these new measures, OGRA aims to deter illegal activities in the oil and gas sector, protect public safety, and maintain a regulated and lawful environment for the industry.

The recommendations made by OGRA are now under consideration by the Cabinet Division. If approved and implemented, the proposed amendments would serve as a strong deterrent against the illegal handling and distribution of petroleum products, ensuring the safety and well-being of the Pakistani public.