Question : PRIVATISATION OF PRODUCTION DISTRIBUTION OF LPG



(a) the progress made so far in privatization of production, import, bottling and distribution of LPG both domestic and commercial; and

(b) the manner in which the cost and pricing-structure of LPG for the private sector are proposed to be fixed to avoid competition with PSUs?

Answer given by the minister



THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS ( SHRI SANTOSH KUMAR GANGWAR )

a) Government introduced parallel marketing scheme(PMS) in 1993 allowing the private parties to import, bottle and market LPG. Upto 31st October, 2000, 24 parties have imported about 874 TMT of LPG in bulk.
b) Domestic LPG marketed by Public Sector Oil Companies is under Administered Price Mechanism (APM) whereas private parties are free to fix the price of LPG sold by them under PMS.