Mr. Atif Ikram Sheikh, President FPCCI, has appreciated Senator Musadik Malik, Federal Petroleum Minister and the Director General of Explosives at the Ministry of Petroleum, for responding to the concerns of trade and industry vis-à-vis the definition, handling, storage, and licensing requirements of liquid hydrocarbons, mixed hydrocarbons, and any other material or mixture containing hydrocarbons.

Mr. Atif Ikram Sheikh was apprised that FPCCI had officially written to the DG Explosives after receiving multiple complaints and queries from the sector seeking clarification. While we acknowledge their reply, we at FPCCI feel that the country needs amendments and updates in the Petroleum Act of 1934 to create an enabling environment for the sector to flourish.

Mr Saquib Fayyaz Magoon, SVP FPCCI, proposed updating the Petroleum Act 1934 to remove irrelevant or obsolete items and reflect only the necessary precautionary or safety measures. The petrochemical industry has evolved over the past many decades, and we need to amend our laws accordingly, he added.

Mr. Magoon highlighted that the products contained in Clauses A, B, and C of the Petroleum Act 1934 should be dealt with separately in terms of licensing, handling, storage, and transportation requirements. He added that the products in Clause B & C should not have as stringent requirements as in Clause A.

Meanwhile, SVP FPCCI recommended that the amendment incorporated in the Petroleum Act of 1934 on August 5, 2023, which introduced the above-mentioned clauses, should be deferred – as it will cause a shortage of raw materials for varied industries about petrochemical products.