Supply LPG only to PSU oil firms, government tells producers -Governance Now

Supply LPG only to PSU oil firms, government tells producers

The sale of indigenously produced LPG is not permitted to the entities other than PSU oil firms

GN Bureau | December 1, 2016

#PSUs #IOC #BPCL #HPCL #Reliance Industries

Liquefied petroleum gas (LPG) producers like Reliance Industries have been asked by the government to supply cooking gas they produce only to state-run oil companies. Private retailers have been asked to source their requirements through imports, reported Press Trust of India.

A statement issued by the ministry of petroleum and natural gas said that “sale of indigenously produced LPG is not permitted to the entities other than government oil companies”. It added that the move is aimed at ensuring supply of subsidised LPG only by PSUs to consumers.

While India is surplus in refining capacity, it does not produce enough LPG to meet all of its demand. It imported 8.7 million tonnes of LPG in 2015-16 and 4.66 million tonnes in first half of current fiscal. LPG is produced by both public sector firms like Indian Oil Corp (IOC) as well as private firms like Reliance Industries.

The ministry said instances have been noticed of all locally produced LPG not being sold to oil marketing companies — IOC, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).

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