Question : SUPPLY OF UNDERWEIGHT LPG CYLINDERS



(a) whether Gas agencies are alleged to be involved in large scale irregularities and corrupt practices such as supply of underweight cylinders especially during the winter season ;

(b) if so, the details thereof ;

(c) the details of gas agencies where godowns were raided alongwith the number of underweight cylinders seized in the metropolitan cities during the last three years ; and

(d) the punitive action taken against the erring agencies ?

Answer given by the minister


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.