IOC in talks to sell 5-kg cylinders at supermarkets

Oil major plans tie-ups with major retailers to market Free Trade LPG cylinders

March 19, 2015 12:00 am | Updated 08:17 am IST - KOLKATA:

Do not be surprised if you find mini LPG cylinders sharing shelf space with the FMCG goods soon. The Indian Oil Corporation plans to market it’s the five-kg cylinders through retail outlets.

“Talks are on between IOC and major retail stores and branded supermarkets across India to make available the Free Trade LPG (FTL) cylinder,” an official connected with the developments told The Hindu .

The Petroleum & Natural Gas Ministry had permitted the sale of the 5 kg FTL cylinder since October 2013 through outlets like petrol pumps, normal distributors and kirana stores. The main objective was to make available this environment-friendly fuel to a wider cross section of society, who struggle to get the normal domestic cylinders. Lack of visibility of the product was the main reason behind the lukewarm response

The target groups include the rural households, the street-corner tea shops and the IT and BPO sector employees in the urban areas whose irregular hours, inability to give address proofs and do paperwork, become a barrier to accessing the usual LPG cylinders. Presently, prices of these cylinders are around Rs. 335.

Maiden tie-up with private sector

Meanwhile, IOC also has signed on another private sector company – Sahaj e-Village Ltd through the Common Service centres of Sahaj for reaching these cylinders to rural areas in Assam, Bihar, Odisha, Tamil Nadu, Uttar Pradesh and West Bengal.

The consumers can get a gas cylinder at their convenience. There is no need to get a regular connection or go through paper work or any residency proof. They can also make a one-time purchase of the domestic pressure regulator with only a proof of identity.

The objective is to make this fuel available to a wider cross section

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