JOIN USOver 10,000 LPG distributors have threatened to go on strike on October 1 to protest the capping of subsidised cylinders in the country even as the Petroleum Ministry has advised against the strike that would hurt thousands of customers.
The National Federation of LPG Distributors of India has been complaining that the government has not consulted them before imposing a cap on the number of domestic LPG cylinders to 6 per year, which according to them will promote black marketing and unfair trade practices.
Talking to Deccan Herald, federation general secretary Pawan Soni said: “Lack of direction from the government on the fine print of the decision on non-subsidised LPG cylinders is likely to leave the distributors with a substantial loss.”
The distributors, for instance, have not been informed formally about the cost at which a non-subsidised cylinder has to be delivered after the government decided to abolish the excise and customs duties on them.
“We have not received any written communication from the government on what should be the market rate of the non-subsidised LPG cylinders. There are organisations such as schools, jails, hospitals and others, who have exhausted their cap long ago. But we are still delivering the cylinders to them at the subsidised rate”.
Soni said that he has written to ministers and also to the oil marketing companies about the cap and related problems, but no steps have been taken so far to allay the fears.
Sources in the petroleum ministry, however, said that there are always a few teething problems whenever decisions causing a shift in the mechanism are made.
They said the implementing agencies should strive and evolve suitable mechanism to check unfair practices, if any.
Officials also feel that LPG distributors were resenting the government’s decision to cap subsidised cylinders as they were not prepared to face the fierce competition the move was expected to create.