Date:20/05/2008 URL: http://www.thehindu.com/2008/05/20/stories/2008052057070500.htm

Karnataka - Bangalore

Ready for some gas trouble?

Anil Kumar Sastry

More than four lakh customers are in the waitlist for additional connections
Direction not to issue new connections is to put pressure on the Centre

BANGALORE: Public sector oil marketing companies have directed their LPG distributors in the State not to issue new domestic LPG connections and put on hold additional connections with effect from May 14.

While an average of 50,000 new connections were being issued a month by the three PSU companies, more than four lakh customers are in the waiting list to get additional connection.

Communication

A distributor of Indane (LPG brand of Indian Oil Corporation Ltd.) in the city confirmed to The Hindu that he had received a communication on May 14 from the company to suspend issue of new connections. “I have also stopped issuing additional connections pursuant to the direction,” he said.

A senior IOCL official told The Hindu that the directions have been issued following instructions from the headquarters. “We know this (suspension of releasing new connections) would severely affect people in the State,” the official said.

According to him, IOCL alone releases nearly 20,000 connections a month, while Bharat Gas (brand name of Bharat Petroleum Corporation Ltd.,) and HP Gas (Hindustan Petroleum Corporation Ltd.,) issues 30,000 new connections.

As far as additional connections are concerned (second cylinder in common parlance), the official said IOCL had a waiting list from January 1, 2007 in the State. As of now, more than 1.5 lakh customers are waiting for an additional cylinder, he said. The company had recently cleared the waitlist till January 2007. It had intended to clear the entire waitlist before the communication was issued, the official noted.

Aim

The PSU oil companies had directed their distributors across the country to suspend releasing new connections and providing additional connections in view of the financial crunch being faced by them.

The companies argued that abnormally subsidised rates for domestic LPG had dented their coffers. The move, it is said, is to bring pressure on the Centre either to allow the companies to increase the rates or get reimbursement.

The PSU oil companies have no issue with commercial and auto LPG as their prices are governed by international prices.