Four crore new LPG consumers in four years

Image
IANS Mumbai
Last Updated : Jan 10 2014 | 7:37 PM IST

A whopping four crore customers acquired new liquefied petroleum gas (LPG) domestic gas connections in the past four years, increasing the customer base from 10.6 crore to 14.7 crore.

This represents a 39 percent increase in growth with around one crore new LPG consumers added each year, an official spokesperson said Friday.

It is expected that by 2015, all the oil marketing companies (OMCs) - Indian Oil, Bharat Petroleum and Hindustan Petroleum - shall together account for more than 16 crore gas consumers.

The development is in tune with the Vision-2015 document of the the ministry of petroleum and natural gas under which the LPG coverage is expected to substantially increase from 50 percent to 75 percent of the country's population.

However, in contrast, the LPG distributor strength grew by only 13 percent - from 9,366 to 10,555 - during the same period, putting pressure on the supply chains.

With the increase in the number of LPG consumers, now the customers per distributor have also shot up 24 percent, which has affected customer service, the spokesperson said.

To bridge this gap, increase cylinder availability and generate employment, the OMCs have initiated measures to appoint around 3,000 regular LPG distributorships across the country.

The OMCs have also introduced LPG portability all over India and market-priced five kg cylinders for the mobile population that cannot provide requisite documentation to avail a gas connection in five metro cities.

From June 2013, the OMCs have also introduced Direct Benefit Transfer in LPG in 291 districts, covering more than 7,800 distributors. This helps improve customer service, eliminate illegal diversion of subsidised LPG cylinders and improve availability for genuine consumers.

For the distributors, the OMCs have introduced rating systems based on delivery performance as part of "Project Lakshya", rewards, commissions and other changes to cater to increasing customer expectations.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 10 2014 | 7:30 PM IST

Next Story