Apart from demand for new gas connections, there may be diversion of subsidised cylinders towards black market, they say

The government’s decision to limit LPG usage to six cylinders in a year on subsidised rate could fuel demand for fresh gas connections, fear gas dealers and authorities in the State capital. There is a lot of confusion among dealers and oil company authorities because they are yet to receive guidelines to implement the new rule.

Oil company officials said that there was no clarity on the status of consumers, who had already booked six cylinders this year. “Question remains whether such customers will be exempted this year. There is a need for clarity on the rate to be charged for rest of the bookings,” a senior HPCL official said.

There are close to 13.5 lakh domestic consumers and nearly 60 LPG dealers in the capital and this number could swell. Dealers are presently registering cylinder bookings online and they need to update the existing software that will facilitate them to keep a tab on the number of cylinders booked.

The dealers are apprehensive that once the new orders come into effect, it will fuel demand for new domestic gas connections and misuse as some may book cylinders to divert them to black market. “It would force joint families to apply for new connections as everyone would try to confine their usage to six cylinders a year,” explains a member of the Twin Cities LPG Dealers Association.

More In: Hyderabad