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OCT 12 2015

IOC to sell subsidised 5-kg LPG cylinders in rural India

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 12th OCT 2015

Indian Oil Corporation (IOC) plans to sell subsidised 5-kg LPG cylinders in rural India in an effort to increase usage of clean fuel for cooking, its chairman B Ashok said.

The state-owned oil marketing company is in the process of setting up infrastructure and working out the logistics. It plans to set up pipelines at major centres that will connect either LNG terminals or bottling plants and refineries to cut on the cost of transportation and increase the speed of delivery.

"India consumes around 18 million tonnes (mt) of LPG, of which 50% is imported. We expect this consumption to touch 25 mt by 2022-23 and this growth will come from rural and semi-urban cities. We are gearing up to cater to the rural masses," said Ashok.

IOC sells 14-kg cylinders in urban areas at subsidised rates. It has come up with subsidised 5-kg cylinders for families below poverty line that are not sold to any other category at present. These cylinders are made available at market price through petrol pumps and kirana shops for families with temporary residency in cities.

The company is now planning to sell subsidised 5-kg cylinders in large numbers to people living in rural areas. These rural consumers will be eligible for 112 kg of subsidised cooking gas in a year which will be delivered in 5 kg containers.

"Every family might not want to shell out the price of a 14-kg cylinder every month, hence the smaller version for villages," said Ashok. To streamline availability, IOC is setting up terminals at Dhamra and Paradip.


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