Cap on LPG becomes sour point, distributors turn protesters
LPG distributors say the govt should first streamline distribution network before capping subsidised cylinders
The government may have made the beginning for handling LPG subsidy but its biggest implementation challenge is staring at its face in the form of LPG distributors. A 10,500-strong lobby of distributors are threatening to go on strike on October 1, opposing the capping of subsidised cylinders in the country.
Pawan Soni, general secretary, National Federation of LPG Distributors of India, told Business Standard that they want the government to streamline LPG distribution network before taking the plunge of capping subsidised cylinders.
"It is a policy decision of the government with which we have no fight. We have no issues with the government charging market price for all cylinders Giving of subsidy is a government prerogative," said Soni.
The federation will be holding a meeting of around 1,200 dealers and member associations on Monday here after which a decision on the strike will be taken.
"Without consulting us, wrong policies are being adopted that will create a black market and promote unfair trade practices," he said. With the government’s latest decision on LPG cylinders both the consumers and the distributors are suffering.
LPG distributors are also peeved with the commission of Rs 25.83 a cylinder that oil marketing companies give them. The commission was last revised in 2010. "We have about two lakh delivery men in the country that get Rs 8 a cylinder which is much lower than about Rs 70 they can fetch by delivering a bag," said Soni.
The Cabinet Committee on Political Affairs had on September 13 decided that consumers of domestic LPG cylinder would get subsidy for only six refills. Though three state Congress ruled governments of Assam, Delhi and Haryana have already announced offering three more subsidised cylinders, Trinamool Congress, Congress' ally in the United Progressive Alliance, has withdrawn support to its government at the Centre on the issue.
Subsidised cylinders, priced currently at Rs 399 in New Delhi while the non-subsidised cylinders will cost around Rs 750.