Question : SHORTAGE OF COOKING GAS



(a) the normal time required for supply of LPG cylinders and the details of the guidelines in this regard alongwith the number of complaints received against various Oil Marketing Companies and gas agencies particularly the Bharat Petroleum Corporation Ltd. (BPCL) during the last three years ;

(b) the current position of the shortage/availability of refill gas cylinders indicating the number of LPG dealers, State-wise ;

(c) whether the gas agencies have been reported to be indulging in corrupt practices and blackmarketing ;

(d) if so, the number of raids conducted against erring gas companies for blackmarketing of LPG and the outcome thereof during each of the last three years, Oil Marketing Company-wise ; and

(e) the steps being taken by the Government to ensure adequate supply of LPG refill cylinders in the country ?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI R.P.N.SINGH)

(a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 43 BY SHRI SUDARSHAN BHAGAT AND SHRI BRIJBHUSHAN SHARAN SINGH TO BE ANSWERED ON 15TH MARCH, 2012 REGARDING SHORTAGE OF COOKING GAS.

(a) : The Public Sector Oil Marketing Companies (OMCs) namely, Indian Oil Corporation Limited (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have prescribed a norm to their LPG distributors to effect the delivery of the refill LPG cylinder ordinarily within two working days of the booking. However, due to factors such as product supply constraints, strikes, road breaches, floods, unplanned shutdown, natural calamities alongwith huge growth of demand, it has been seen that the distributors are taking upto 15 days to deliver refill LPG cylinder.

Based on the established complaints of delay in supplies of LPG refills, action has been taken in 285 cases, including 77 cases of BPCL, against erring LPG distributors during the last three years and the period April, 2011 to January, 2012 under the provisions of MDG/Distributorship Agreement.

(b): OMCs have reported that they have supplied 10,982.83 Thousand Metric Tonne (TMT) of domestic LPG in the country during the period April, 2011 to January, 2012 as against 10,149.84 TMT of domestic LPG during the corresponding period of last year, showing a growth rate of 8.21%. As on 12.03.2012, the stock of LPG on all India basis, including stock on wheels, is about 264 TMT, which is equivalent to 6 days cover. The backlog as on 12.03.2012 in various States is 47.37 TMT. Currently, the OMCs are operating 11,215 LPG distributorships including 942 Rajiv Gandhi Gramin LPG Vitaran (RGGLV) distributorships in the country. The State-wise details are at Annex.

(c) & (d): To check blackmarketing of LPG, OMCs carry out regular surprise inspections at distributors’ premises, conduct refill audits, surprise checks at customers’ premises, en-route checking of delivery vehicles etc., and action, where-ever necessary, is taken in accordance with the provisions of the MDG.

Based on the established complaints of blackmarketing of LPG, action has been taken in 756 cases against the erring LPG distributors during last three years and the period April, 2011 to January, 2012 under the provisions of MDG. The Company-wise details are as under :-

Name of OMC Action taken
IOC 340
BPCL 188
HPCL 228

In order to check blackmarketing/ diversion of domestic LPG cylinders, the Government has brought out the “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000” and formulated “Marketing Discipline Guidelines, 2001” which provide for penal action against LPG distributors indulging in blackmarketing /diversion of LPG.

MDG, inter-alia, provide for following action against an errant distributor:-

# Fine of ` 20,000 plus the price of LPG diverted at commercial rates for 1st offence.

# Fine of ` 50,000 plus the price of LPG diverted at commercial rates for 2nd offence.

# Termination of the distributorship for 3rd offence.

(e): 34.65% of the total LPG consumption in the country i.e. 4.295 Million Metric Tonne Per Annum (MMTPA) is required to be imported, mainly from the countries such as Saudi Arabia, Qatar, Kuwait, Abu Dhabi and Malyasia. Necessary steps are taken on a continuous basis by the OMCs to ensure supply and distribution chain of LPG is maintained. As and when a backlog occurs, there are standing instructions of the Government for operating the OMCs bottling plants on holidays and running them on extended hours.