Five kg subsidized LPG cylinders to be sold in rural India by IOC

Indian Oil Corporation (IOC) plans to sell subsidized five kg LPG cylinders in rural India in an effort to increase usage of clean fuel for cooking, company's chairman B. Ashok said today.

The state-owned oil marketing company is in the process of setting up infrastructure and working out the logistics. Set up of pipelines at major centers' is also in the pipe line by the company to enhance the LNG terminals and refineries that will help to cut cost of transportation and increase the speed of delivery.

"India consumes around 18 million tonnes (mt) of LPG, of which 50 percent is imported. We expect this consumption to touch 25 mt by 2022 to 23 and this growth will come from rural and semi-urban cities. We are gearing up to cater to the rural masses," said Ashok.

The company is now planning to sell subsidized five kg cylinders in large numbers to people living in the rural areas. These rural consumers will be eligible for 112 kg of subsidized cooking gas in a year, which will be delivered in five kg containers.

To streamline availability, the IOC is setting up terminals at various stations such as Dhamra and Paradip in Odisha.