LPG supplies going the black market way?
LPG supplies going the black market way?
With erratic supplies owing to the issues at the bottling plants of oil companies in the state, as well as loss of working days recently, the LPG gas market is slowly falling into a system of black marketing.

As an uncertain and gruelling phase is staring at LPG users all over, it is poised to be more critical in the city, where there is hardly any other viable option.

With erratic supplies owing to the issues at the bottling plants of oil companies in the state, especially at IOC’s Udayamperoor plant, as well as loss of working days recently, the LPG gas market is slowly falling into a system of black marketing.

As another strike of LPG transporters is also slated to commence from Friday, the woes of  consumers are bound to be aggravated manifold.

While the non-subsidised, domestic LPG cylinders, which were supposed to cost Rs 798, witnessed a hike in price to Rs 925 per cylinder the other day, the same are being sold anywhere around Rs 1200 now to select buyers, based on the demand. In effect, given the subsided LPG cylinder price of Rs 427.05, needy customers are forced to shell out a hefty price.

For non-domestic consumers like hoteliers, the scenario is even more harsh. Cylinders of  private companies had a pricing in the Rs 1,000-1,600 range earlier itself, depending on the quantity of the LPG.

“We admit that there are a few among us who are cashing in on the situation,” a prominent IOC dealer in the city with around 50,000 connections told Express, while preferring  anonymity.

“The software is being upgraded every day  now owing to the flurry of policy changes, leaving enough room for any dealer to manipulate the system,” he added.

“Only if a system wherein the subsidy element is directly passed on to the consumer’s bank account, as is being effectively done in Delhi, will the chaotic situation change,” he remarked.

The entire situation has been aggravated as it has become clear that most of the dealers are ill-equipped to keep in tandem with banks for the suggested pace to streamline the ‘Know Your Customer’ (KYC) scheme. It is expected to take a minimum six months for each dealer to be on the new track.

The moves of the State Government to provide additional three cylinders for BPL customers at subsidy rates, over and above the six subsidised ones to be given to all, is also going to face problems, according to indications. It will be very difficult to determine a BPL category customer, since a sizeable number, like beneficiaries of the NREGA scheme, have been upgraded to the APL category, as per norms.

The city’s LPG needs are catered to by the Indian Oil Corporation with 22-23 truck loads every day, while BPCL and Hindustan Petroleum  deliver 10 and 7-8 loads respectively. The capacity of an LPG truck is 306 cylinders.

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