Each 5 kg cylinder will cost Rs 362

The Petroleum and Natural Gas Ministry on Wednesday announced the launch of free trade LPG scheme (FTL) under which state-run oil marketing companies (OMCs) would begin sale of LPG cylinders of 5 kg each across the counters at select petrol pumps owned by the OMCs in five metros for Rs. 362 per cylinder.

Petroleum and Natural Gas Minister, Veerappa Moily has approved of the new policy which has priced the small LPG cylinder at more than double the subsidised cooking gas. These cylinders would be available at petrol pumps owned and operated by OMCs in Delhi, Mumbai, Chennai, Kolkata and Bangalore. The scheme will be expanded to more pumps in the metros and other parts of the country depending upon the success of the pilot project in the five cities, an official statement issued here said.

While a subsidised 5-kg LPG cylinder costs Rs. 152 in Delhi, a market-priced refill which will be available at select petrol pumps will cost Rs. 362. In Mumbai, the price of non-subsidised 5-kg LPG cylinder will be Rs. 396 as opposed to a subsidised refill of Rs. 163. Besides being costlier, the refills will be available only at company-owned-company-operated (COCO) petrol pumps, which make up for less than 3 per cent of the 49,077 retail outlets in the country.

As per the scheme, consumers will have to, at first purchase, pay the price of the cylinder and administrative charges besides the cost of the fuel. On subsequent refills, they will have to pay only the fuel cost. ``The prospective customer at the time of first sale would only be required to give a copy of voter I-card, driving license, pan card, Aadhaar card, bank pass book, employees ID, passport, student ID or any other such document that can act as a proof of identity,’’ the statement added.

The Free Trade LPG (FTL) Scheme is targeted at a new category of consumers in big cities who are mobile and thus do not want a permanent LPG connection but still require LPG for their needs. Customers like students and small families require the flexibility in getting LPG cylinders as per their convenience, and their needs can be met by smaller quantities.

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