Demand of subsidized LPG cylinders declines by 1.5%

Demand of subsidized LPG cylinders diversion for commercial purpose has declined by 1.5% because of harsh policies of government. This has resulted in encouraging oil companies to cancel 9 lakh ton of LPG import which amounts to Rs. 100 crore. Government has reduced number of subsidized cylinders in a year to nine and has cut duplicate connections to prevent commercial use of subsidized cooking fuel. By using Aadhaar like ID proof, government has terminated fake LPG connections. A senior officer of an oil company said, “Oil companies have already cancelled about 9 lakh ton of oil import orders whose value is about Rs. 100 crore”. About 150 lakh ton of LPG is consumed every year in India and to fulfill the requirements the country imports about 60 lakh ton of fuel from other countries.

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According to Petroleum Planning and Analysis Sale (PPAC), consumption of cooking gas in the month of August has decreased by 0.5% while in the first five months of the current fiscal year it declined by 1.6%. PPAC has said that limiting subsidized cylinders and blocking duplicate and multiple connections has brought significant decline in consumption of the subsidized cylinders. Companies’ executives and government employees say that they will continue new norms in LPG trade. An executive of a government firm said that for distribution of subsidized LPG cylinders, they will use Aadhaar for identification of regions because Supreme Court in its interim order has not banned its usage. Executive told that they have to ensure that subsidized cylinders cannot be used for industrial or commercial purpose and this can be possible only through Aadhaar like identification.

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