Question : LPG Network

(a) whether the Oil Marketing Companies (OMCs) have put on hold the proposal for expansion of Liquefied Petroleum Gas (LPG) network by appointing several thousand distributors across the country;
(b) if so, the details thereof along with the total number of LPG distributors likely to be appointed and the reasons for withholding the expansion;
(c) whether the OMCs have collected any deposit from prospective distributors;
(d) if so, the details thereof along with the steps taken for refunding their money;
(e) whether the existing distributors are having any ceiling limit of consumers; and
(f) if so, the details thereof along with the number of distributors having LPG customers over and above the ceiling limit and the steps taken for efficient customers service by the OMCs?

MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)
(a) & (b)
Appointment of LPG distributorships is a continuous process. Under Unified Guidelines for Selection of LPG distributorship, Oil Marketing Companies (OMCs) have advertised 6351 locations across the country to increase the distribution network of LPG.
(c) & (d)
As per Unified guidelines for Selection of LPG Distributorship, an interest free refundable security deposit of 10% applicable for the respective type/category of LPG Distributorship is collected from the selected candidate prior to issuance of Letter of Intent (LOI) and the same is adjusted against the security deposit as applicable.
(e) & (f)
As per Unified guidelines for Selection of LPG Distributorship, the refill ceiling limit has been fixed on the basis of population of the designated area. The distributors are required to make necessary infrastructure arrangement as per refill ceiling for the efficient customer’s service. Market-wise details of ceiling limit is as under :-
Type of Distributorship area
Population as per census 2011
Refill Ceiling Limit per month
Sheheri Vitrak
Cities with population > 40 lakh
20,000
Cities with 20 to 40 lakh population
15,000
Cities with 10 to 20 lakh population
12,000
Rurban Vitrak
Towns with < 10 lakh population
10,000
Gramin Vitrak
Village / Cluster of villages
5,000
Durgam Khetriya Vitrak
Village / Cluster of villages
1,500
Major steps taken by the Government /OMCs to bring transparency in the functioning of LPG distribution across the country are:-
i) In order to regulate distribution of LPG, “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000” has been notified.
ii) KYC initiative for all New Connections/Multiple Connections/Transferred/Inactive customers so that customers with proper identity and address proof are enrolled at distributors.
iii) IVRS/SMS refill booking system has been introduced across the country in all regular distributorships, wherein customers get SMS on refill booking / generation of cash memo. Also this empowers the customers and enables him to report any wrong/non delivery.
iv) OMCs have notified LPG Marketing Discipline Guidelines (MDG) to be adhered to by the distributors. The MDG is revised from time to time to cover all aspects of LPG marketing and to keep a check on erring distributors
v) Provision to rate the services of the OMCs distributors is available on web portal by giving Star Ratings
vi) In order to have a convenient, easy and effective way to enable the citizen to provide their feedback, a unique toll free telephone number 18002333555 is in operation through call centers on industry basis.
vii) Complaints are investigated and if established, suitable action is taken against the LPG distributor(s) as per provisions of the Marketing Discipline Guidelines (MDG) by the OMCs.
viii) OMCs have also introduced different colours for domestic and non-domestic LPG cylinders so that misuse of domestic LPG cylinders for unauthorized use is easily identifiable.