New LPG connection, second cylinder issue remain on hold
Five months after new liquefied petroleum gas (LPG) and double bottle connection issue were placed on hold, households continue to wait for early resumption as
Five months after new liquefied petroleum gas (LPG) and double bottle connection issue were placed on hold, households continue to wait for early resumption as most of other curbs introduced in the wake of West Asia crisis have since been relaxed. Confirming the growing wait for new connections as well as second cylinder for households, sources in the oil industry estimate their numbers to be a few lakhs. But this is not the only source of worry around cooking gas cylinders for the average households. Many existing users who are yet to complete e-KYC or the biometric Aadhaar authentication, a process underway initiated some months ago, have recently started getting messages that they will become ineligible to get LPG refills at subsidised prices if the requirement is not complied with.
As much as the customers concerned, national oil marketing companies — Indian Oil, HPCL and BPCL — and their distributors are looking forward to formal communication on what will be the rate at which such non-eKYC customers will be supplied refills. If at commercial LPG prices, will such supplies also attract GST at the higher 18% rate. In Hyderabad, 14.2 kg cylinders cost ₹994 each and attract 5% GST, while a 19kg commercial cylinder, post the August 1 reduction of ₹206, come for ₹2,985. Government orders permitting issue of new LPG connections and DBC, to households are needed, an official in one of the OMCs said, agreeing that other restrictions on petroleum products, introduced days after the war in West Asia began on February 28, have been relaxed.
These include those on commercial LPG supplies as well as bulk users drawing diesel from retail outlets. Newly married couples as also people moving to a new location for job or education are the ones most impacted by the curbs on new LPG connection. Large households in need of additional connections are also facing the heat. Distributors continue to receive enquiries from such customers as also from those with single cylinder connection for DBC, Telangana LPG Distributors Association president Jagan Mohan Reddy said, disputing the official numbers of those in the waiting list. “I anticipate around 4-4.5 lakh consumers in Telangana to benefit” once the new and second cylinder issue is resumed, he added.
Per the Petroleum Planning and Analysis Cell (PPAC) numbers, there are 32.97 crore active domestic LPG consumers in the country, including 1.26 crore in Telangana. Meanwhile, oil companies are promoting 5 kg free trade LPG and recently introduced 10 kg composite body cylinder. The price of both products are linked to the commercial LPG, with sources saying the latter was expensive on account of the refill.
The BriefWire