Private marketeers of lpg gas
Guest
(Querist) 12 February 2012
This query is : Resolved
This is in connection with selling of 4 kg LPG cylinders by some private operators through utensil shops in an around Neredmet, Secunderabad AP.Filled and sealed cyl of 4 kg weight with ISI mark are also being marketed by those Utensils shops. The cylinders are kept in front of the open spaces right across the main road. They are charging Rs 1200 for 4 kg Refils.I am told those are from authorised private operators.I have down loaded regulatory directives from the govt of India on the issue. There is a mention of of "Private Marketeer" . I am unable to decipher what exactly that means. Can they flout all norms for storing , selling LPG gas cylinders for domestic use to registered subscribers only. Those private companies are distributing their sealed cylinders to any body and every body at appx 3 times the subsidized rates through the utensil shops throwing safety etc etc to the winds.I am attaching the directives for your perusal please.
V R SHROFF
(Expert) 12 February 2012
So, what you want from us??
Majority of your queries are PIL related.
So file PIL.
[ this Query also relates to PIL, and your points are correct ]
Guest
(Querist) 12 February 2012
To submit a pil I need help from the experts on this very crucial issue which in my considered opinion is the root cause of many major fires in most of the Metro as well as II tier Cities.
In one hand LPG through PDS system duly subsidised with lots of restrictions imposed on distributors for registering a new customers to release of a Gas Cyl Valve to standardised Cylinders with specified weights( 14.5 and 5 Kg)to storing facility to compulsory Home delivery , on the other hand those very same PSU are being authorised to engage private marketeers to sell 4 kg LPG cylinders without any registration of the shelf from the utensil shops with safety norms observed.A mere refil for 4 kg cyl at the utensil shop which sells unauthorised 3/5 kg cylinders with gas stove fitted on its top is Rs 1200 against Rs 111 for 5 kg gas cyfil through public distribution system. Is it not sufficient to understand why there is short supply of those LPG through public distribution system besides risking the citizen of this country to major man made fires?
I am requesting your legal interpretation of the govt rules - does it empower the private marketers to supply LPG cylinders without :-
a) Registration as a subscriber.
b) Without engaging licenced distributors.
c) Without delivering it/installing it to the subscribers.
d) Without a network of emergency service.
e) And can market determined price be almost 12 times the cost per kg of LPG in comparison?
Guest
(Querist) 12 February 2012
LPG MARKETING BY PUBLIC SECTOR OIL MARKETING COMPANIES (OMCs)
1.1 Four Public Sector Oil Marketing Companies (OMCs) viz., Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and IBP Co. Limited are engaged in marketing of LPG in the country. With increased availability of LPG, the number of LPG customers enrolled by them has also been increasing. The number of LPG customers served by them, as on 1.4.2005, was about 845 lakh through their network of 9,001 LPG distributors.
1.2 Consequent upon liquidation of LPG waiting list in urban areas and availability of new LPG connections across the counter, in existing markets throughout the country, OMCs had set the target for release of about 63 lakh new LPG connections during financial year 2004-05 with a thrust on smaller towns/rural areas which were hitherto virgin markets. OMCs have already commissioned 535 distributorships. During the year 2004-05, OMCs had released about 73 lakh new LPG connections and commissioned 675 LPG distributorships.
MARKETING OF 5 KG LPG CYLINDERS BY OMCs.
PSU Oil Companies had launched 5 Kg cylinders on 16th August 2002 at Shimla, Himachal Pradesh. Since then, scheme has been expanded to all other States as per demand of product.
Basic purpose for launching 5 Kg cylinder was that the small size LPG cylinder in the domestic sector will help in fulfilling the demand of low income groups in urban, semi-urban and rural pockets and also extend reach to hilly terrain and interior areas on account of convenience in transportation. The LPG connection with 5 Kg domestic cylinder in terms of deposit of Rs. 350/- per cylinder and low cost of refills costing approximately Rs. 110/- is affordable for the low income groups. This will also help in meeting the requirement of economically weaker sections of the society for LPG refills and help in restricting deforestation, ensuring a pollution free, happy and healthy environment.
During the year 2004-05, OMCs had released about 1 lakh number of 5 Kg connections in 27 States and 2 UTs. Total customers of 5 kg cylinders are about 2.42 lakh with OMCs as on 1.4.2005.
LPG AS AUTO FUEL
Government has permitted use of LPG, being a clean and environmentally friendly fuel, as an auto fuel. For this purpose, MOP&NG along with other concerned Ministries/departments has formulated necessary Legislative and Regulatory framework for safe usage of LPG as an automotive fuel.
Hon'ble Supreme Court has mandated conversion of old vehicles to LPG/CNG in cities which are equally or more polluted than Delhi like Ahmedabad, Agra, Bangalore, Chennai, Hyderabad, Kanpur, Kolkata, Lucknow, Mumbai, Pune, Surat and Sholapur.
Some more input please.
PARALLEL MARKETING OF LPG.
In order to increase the availability of LPG and to foster competition, the private sector was allowed to participate in the scheme of parallel marketing of LPG in April 1993- by decanalising imports of LPG. Under the scheme, a private party can undertake import of LPG after obtaining a rating certificate from one of the approved rating agencies given in the LPG (Regulation of Supply and Distribution) Order, 2000. Under PMS LPG is to be sold at market-determined prices by the private parties. LPG imports during 2004-05 have been about 265.3 TMT against about 216.3 TMT during the last year.
Recently Government have authorized ONGC, GAIL & RIL to market their seasonally surplus LPG through parallel marketing system or directly. Likewise, Government have authorised RIL and MRPL to sell SKO directly at market price, after meeting PDS requirement projected by OMCs.
Raj Kumar Makkad
(Expert) 12 February 2012
File PIL as this is very good subject.
Guest
(Querist) 14 February 2012
Dear Sri Makkad
Will you please help me preparing the Draft PIL.I am collecting more data across the country on the issue.
Guest
(Querist) 17 February 2012
I have just received a reply on the issue from an under secretary at the ministry of Oil and natural gas.let me upload it as it is.
Guest
(Querist) 23 February 2012
How to counter the claim of the under Secy in the Min of O%NG?
Guest
(Querist) 01 March 2012
But how do I then prepare my Draft PIL? Is it not an issue of national importance? Pl keep the thread open. I am sincerely working on it and need some more expertise on the issue.
