In what would come as a relief to millions of cooking gas users, especially those who don't have a permanent connection and rely on small refill cylinders for their regular requirements, the Government has approved a scheme wherein 5-kg cylinders would now be available for sale at select petrol pumps in metro cities.
However the catch is that these 5-kg cylinders would be available at market price which is double the rate of Rs 28.8 per kg for subsidised domestic lPG cylinder (Rs 410 per 14.2-kg cylinder in Delhi).
Also these are to be sold at company-owned-company-operated (COCO) petrol pumps, which make up for just 3 per cent of over 47,000 outlets across the country.
“The Government has approved Free Trade lPG (FTl) Scheme for selling 5 kg lPG cylinders through Company Owned Retail Outlets (COCO) PSU Oil Marketing Companies (OMCs),” an official statement released on Wednesday by the Petroleum Ministry said.
Petroleum Minister M Veerappa Moily has approved a proposal to launch the scheme on pilot basis in Delhi, Mumbai, Chennai, Kolkata and Bangalore for selling 5 kg lPG cylinders with/without Domestic Pressure Regulator (DPR) at COCO retail outlets.
“The OMCs have COCO retail outlets which are accessible to all and are open for longer hours,” it said. Indian Oil, Bharat Petroleum and Hindustan Petroleum together have 1,440 COCO pumps all over the country.
The scheme is to be formally launched soon, though no specific date has been announced as of now, official sources said. At the same time though all the preparations have been made, they added.
The prospective customer, at the time of first sale would only be required to give a copy of the Voter I-Card, Driving license, Pan Card, Aadhaar Card, Bank Pass book, Employees ID, Passport, Student ID or any other such document that can act as a proof of identity.
The COCO retail outlet, the ministry said, would keep a demo kit of an ideal kitchen and explain the cylinder connection or disconnection procedure at the time of first sale.
However, it would be customer's responsibility to use the equipment as per the safety instructions. The company would not be liable for any losses/damages arising in case of accident during transit or usage.
Oil marketing companies (OMCs) will offer, on request, an insurance policy which will provide cover for loss of life and property in the event of an lPG accident occurring at the customer's premises. In transit insurance cover will not be available. On the request of the customer, the COCO outlet through the supplying distributor shall also provide the installation of equipment at customer's premises and will also provide after sales services on chargeable basis.
According to the ministry, the decision to allow sale of 5-kg cylinders was taken in view of the fact that over the years, a new category of consumers has emerged especially in big cities which is mobile and thus does not want a permanent lPG connection, yet it is essential for their needs.
Such customers need flexibility for getting the lPG cylinders as per their convenience and their needs can also be fulfilled by smaller quantities of lPG, and therefore the move was initiated, official sources said.
The lPG sold under the scheme will be called Free Trade lPG (FTl). At the time of first sale, the cost of cylinder, cost of product at prevailing non-domestic 5-kg cylinders price and administrative charges will be payable.
At the time of subsequent refill, only the cost of product will be payable, the statement added.