Kerosene dealers might get to sell LPG

Soon, your nearest kerosene dealer could be instead supplying five-kg cylinders of unsubsidised cooking gas (LPG).

With the central government's effort to phase out use of kerosene, the idea is to ease the livelihood strain on kerosene dealers. So, the ministry of petroleum is planning to offer licences for selling of five kg LPG cylinders, in lieu of the kerosene dealership.

"This will be with a condition that those interested will not claim regular distributorship of cylinders," said an official source. The ministry is also considering LPG distributorships under which the existing kerosene dealers have sole proprietorship. Those with an average allocation of less than 75 kilolitres of kerosene a month in the preceding year may apply. In this case also, the kerosene dealership will be lost for the allottee.

The Centre is giving special incentives for states that cut kerosene allocation. "Jharkhand, Punjab and Karnataka have already got these," said another official. States that cut are given a cash incentive of 75 per cent of the subsidy savings during the first two years, 50 per cent in the third year and 25 per cent in the fourth year. During 2015-16, India consumed 86,85,384 kl, through the ration shop system.

"There are about 6,600 kerosene dealers. Lakhs of people dependent on this. The idea of a licence for five-kg unsubsidised LPG cylinders is not acceptable. However, we are keen if the government is ready to give us LPG licences," said Arvind Thakker, president, All India Kerosene Dealers' Federation.

Recently, the three government-owned oil marketing companies issued advertisements for LPG distributorship at 1,531 locations in the states of Punjab, Uttar Pradesh, Uttarakhand and Odisha.

A central scheme was launched on May 1, 2016, with a target of providing LPG connections to 50 million below-poverty-line families in three years, with government support of Rs 1,600 a connection. In this year, 166,86,876 connections have been given under the scheme.

Easing efforts

• The govt is planning to offer licences for selling of five-kg LPG cylinders, in lieu of the kerosene dealership 
• The central govt’s effort to phase out use of kerosene, the idea is to ease the livelihood strain on kerosene dealers
• A central scheme was launched on May 1, 2016, with a target of providing LPG connections to 50 million below-poverty-line families