Now 5-kg LPG refills at petrol bunks

IOC’s initiative to benefit customers who find documentation for regular connection challenging

The Indian Oil Corporation (IOC) has launched the sale of 5-kg cooking gas cylinders at the company-owned, company-operated petrol bunk at Hi-Tec City.

The decision to sell the LPG cylinders through the retail outlet is intended to benefit the customers who find the documentation required for a regular, 14.2-kg subsidised connection, challenging.

Executive director, Telangana and Andhra Pradesh State Office, Rahul Bharadwaj, launched the sale on Saturday and highlighted the benefits that the customers would get. Procuring the smaller refill involved minimal documentation. Customers can obtain the 5-kg refill by producing an ID proof and making the requisite payment. No other documentation was required.

The petrol bunk, unlike an LPG distributorship, would sell the refill round the clock through the year. The bunk selected for the pilot project was one of the high selling outlets with monthly sales of 610 kilo litres of petrol, 1,765 KL of diesel and around 224 KL of premium, branded fuels. It would stock 18 LPG cylinders. Based on customer response, the company would consider extending the 5-kg refill sale to more petrol bunks, an IOC official said.

The ownership of the cylinder rests with the customers and hence, it can be carried anywhere in the country without the documentation required as in the case of the subsidised product. The company said there was no security deposit.

While purchasing for the first time, a customer need to pay a total of ₹1,322 towards the equipment (cylinder) cost and for the Suraksha rubber tube and pressure regulator. Of this, ₹944 is for the equipment, inclusive of 18% GST. Buyback of the cylinder will be at ₹ 500 apiece.

The cost of the 5-kg LPG -- ₹306 at present -- would be separate and subject to revision every month. While a 14.2-kg non-subsidised cylinder costs ₹572, a 19-kg cylinder comes for ₹1,085.50. The GST levy on domestic and commercial cylinders varies.

The price, however, is not expected to be an issue for those opting for the 5-kg cylinder. “The boom in various segments such as IT, real estate, BPOs and educational institutions has led to the emergence of a large, new category of customers who are young, staying away from home, migrant in nature and have got adequate disposable income,” the company said.

By marketing the 5-kg LPG cylinders through petrol bunks, the company hopes to improve the popularity of the product. Though the non-subsidised 5-kg cylinder sale through distributors was launched three years ago, it has not really taken off as expected. Some 10 distributors deal in the product and the sale has been under 100 cylinders a month, sources said.