MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS(SHRI R. P. N. SINGH)
(a) to (c) : The possibility of blackmarketing/diversion of subsidized domestic
LPG cylinders by some unscrupulous elements is not ruled out due to the wide gap
between the retail price of LPG for domestic use and the market price for
commercial LPG.
Based on the established complaints of diversion/ supply of partially
used cylinders / under-weight cylinders / pilfering product from LPG cylinders,
action has been taken in 135 cases against the erring LPG distributors in the
country, including 32 cases in Metropolitan cities during the last three years
and April 2011 to June 2011 under the provisions of Marketing Discipline
Guidelines (MDG)/Distributorship Agreement.
(d) : Whenever OMCs receive complaints, these are investigated and if the complaint
is established, suitable action is taken against the LPG distributor(s) in accordance
with the provisions of the MDG.
MDG, 2001 provides inter-alia following action against erring LPG distributors:-
# Fine of Rs. 20,000 plus the price of LPG diverted at commercial rates for 1st offence.
# Fine of Rs. 50,000 plus the price of LPG diverted at commercial rates for 2nd offence.
# Termination of the distributorship for 3rd offence.