Moily to launch sale of 5-kg gas cylinders in Delhi tomorrow

Oil Minister M Veerappa Moily will tomorrow launch sale of 5-kg cooking gas (LPG) cylinders at petrol pumps in the national capital.

The scheme to sell market priced 5-kg cooking gas cylinders was launched at all over the country except for Delhi, Rajasthan, Madhya Pradesh and Chhattisgarh in view of the assembly elections in those states.

The scheme is now being launched in Delhi tomorrow, official sources said.

A 5-kg LPG cylinder will be sold at petrol pumps for Rs 543. The price compares to Rs 414 charged for 14.2-kg subsidised cylinder from households.

Cooking gas till now was sold only by 13,088 LPG distributors or dealers of state-owned firms. Now, the convenient 5-kg bottle will also be available at 50,392 petrol pumps across the country.

Sources said the scheme as a pilot was launched on October 5 last year at petrol pumps owned and operated by oil companies in Delhi, Mumbai, Kolkata, Chennai and Bengaluru. Company-owned and operated outlets make up for just 3 per cent of all the petrol pumps in the country.

With the scheme receiving encouraging response, it was extended to all petrol pumps across the country.

The scheme will be a boon for the migratory population such as students, IT professionals and BPO employees, as well as people with odd work hours. It offers them the flexibility to pick up cylinders and obtain refills at the time of their choice because petrol stations are open for longer hours than LPG dealers, sources said.

The first-time purchase of a 5-kg cylinder will cost Rs 1,000 plus taxes, while a regulator will be available for Rs 250 and taxes. The first time charge includes a security deposit for the cylinder.

Subsequent refills will be sold at the prevailing market price.

Traditionally, OMCs have sold LPG cylinders through their LPG distributor networks. Customers are enrolled by collecting proof of identity and address and a deposit for the cylinder and regulator.

"There is an emerging segment of new consumers like IT professionals, BPO employees who want LPG but in absence of proper proof of address cannot access the same," an official said.

Further, because of their irregular work timings, they may not be able to visit the distributor or be at home to receive cylinders during normal working hours. For some consumers, the need is in small parcels or arises at odd times of the day when distributors may be closed.

The initiative allows sale of 5-kg cylinders at market price to customers who provide proof of identity.