Question : LPG CONSUMPTION IMPORT



(a) whether the Government has assessed consumption and requirement of LPG for domestic/commercial use in the country and if so. the quantum of LPG produced/imported to meet the requirement in the country;

(b) whether a separate new connection is mandatory for small capacity domestic LPG cylinder.

(c) if so, the details thereof along with amount of subsidy given to consumers as compared to normal cylinder;

(d) whether the Government proposes to issue guidelines for filling domestic LPG cylinders from petrol/diesel pumps and if so, the details thereof along with safety instruction issued by the Government for keeping LPG cylinders at petrol/diesel pumps;

(e) whether the Government has issued instructions to LPG agencies banning new gas connections to consumers in the country and if so, the details thereof and the reasons therefor along with steps taken by the Government to issue new connection in the country, State/UT- wise, particularly in Rajasfhan; and

(f) whether the Government proposes to deactivate the gas connection that have not been refilled by subscribers even for once in six months and if so. the details thereof, State-wise, particularly Rajasthan ?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) : Public Sector Oil Marketing Companies (OMCs) have reported that the assessment of requirement of LPG in the country is made on annual basis. Imports are required as indigenous production of LPG is (ess than the demand of LPG. The projected demand is monitored regularly and mid-course corrections are made based on the prevailing sales trend, change in policies or other factors which may influence the demand.

As per the OMCs. for the year 2015, demand of 18.4 MMT and indigenous availability of 10.2 MMT has been projected for the country. To meet this demand, the import of 8.2 MMT has already been tied up.

(b) & {c) : As per the Liquefied Petroleum Gas (Regulation of Supply and Distribution) (Amendment) Order 2014, a person or household can have only one subsidized connection irrespective of domestic L.PG cylinder of 14.2 Kg or 5 Kg capacity.

The subsidy amount of LPG varies from market to market on monthly basis depending on the fluctuation in price of LPG in international market. The subsidy amount in Delhi for the month of March`15 is Rs. 192.18 per 14.2 Kg & Rs. 68/- for 5 Kg capacity Domestic LPG cylinder.

(d): Government has allowed the sale of 5 Kg LPG cylinder with / without Domestic Pressure Regulator (DPR) subject to statutory clearances of Petroleum and Explosives Organization (PESO)/ Oil Industry Safety Directorate (OISD) through Public Sector Oil Marketing companies (OMCs) Retail outlets , which are accessible to all and are open for longer hours. At the time of first sale cost of equipment (DPR plus cylinder), cost of product at prevailing Non-domestic 5 Kg cylinder price and administrative charges will be payable. At the time of subsequent refill, only the cost of product is payable.

Subsequently sale of 5 Kg Free Trade LPG (FTL) cylinder has been extended to LPG distributorship points and Kirana /General stores etc also to further convenience of consumers. As on 01.02.2015, the scheme is under operation in 129 cities with 241 retail outlets, 327 distributorship points and 192 Kirana stores on industry basis.

The Safety guidelines for sale of above cylinders through Retail Outlets are as under (i) In case delicensed area is available in the COCO RO. it should be selected first else the space for storing LPG cylinders (less than 100 Kgs) within the licensed area should be selected, subject to meeting observations given by PESO.

(ii) The demarcated cylinder stocking area is to be provided with proper roof/covering from above. The sides are to be provided with barbed wire fence with fixed/restricted entry,

(iii) The 5 kg FTL cylinders are to be stocked vertically only within the demarcated area for cylinder stocking. Maximum stock of filled 5kg FTL cylinders at such identified demarcated area shall be 18 nos. and at no point of time the stock shall exceed the same.

(iv) The 5 kg FTL cylinders shall not be stored or distributed from the sales room of the retail outlet or other amenities which have ordinary electrical fittings and are regularly used by COCO RO staffs as well as general public.

(v) One 10 kg fire extinguisher near the area demarcated for storage of 5 kg LPG cylinders will be provided which will be maintained/ serviced along with other fire extinguisher at the COCO ROs.

(vi) Safety card containing instruction for safe usage of LPG shall mandatorily be handed over to customer while issue of new LPG connection.

(e) : New domestic LPG connection Is released to the prospective customer once he / she approaches the concerned distributorship and fulfills the required formalities.

State/UT-wise details of new LPG connections released by the OMCs in the country including the state of Rajasthan during the last three years and the period from April, 2014 to January, 2015 are at Annexure 1.

(f): Presently a customer is automatically deactivated in the OMC software if he/she has not taken the refill for more than 6 months. This provision was made in order to ensure that cylinders are not diverted. Such deactivated customers have to complete the formality of Know Your Customer (KYC) for reactivation.

State / UT-wise details of number of domestic LPG connections de-activated on account of not taking refill for more than 6 months in the country including the State of Rajasthan, as on 01.03.2015, are at Annexure ll.