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Friday, September 28, 2012

Government says no ban on issue of new LPG connections

The government today said it has not banned issue of fresh cooking gas (LPG) connections and there was only a temporary three-week hiatus in new allotments pending elimination of duplicate connections.

State-owned oil firms are carrying out a massive nationwide exercise to eliminate users having multiple connections at the same addresses. Pending this, new allotments are on hold, an official said.

"When a customer applies for a new LPG connection, the gas distribution agency after scrutiny sends an intimation letter informing of the allotment being made. In all cases where such intimation letter has already been sent, new connections will be issued. That is a commitment," he said.

While new applications will continue to be accepted, the intimation or allotment letters would not be issued just yet.

"We are updating software at company end as well as at the gas agency end to take into account the recent decision of the government to restrict supply of subsidised LPG cylinders to six per household in a year. This will take minimum of three weeks," he said.

Also, there are four different prices of LPG now - one rate for the subsidised cylinder, one for extra bottles that a household may buy after exhausting the entitlement of six subsidised cylinders, one rate for charitable and other institution and fourth a commercial price for LPG used in establishments like hotels.

Besides, the oil firms are also eliminating duplicate connections -- only one LPG connection on one address is allowed and the rest are being disconnected.

"All this is taking some time and in the meanwhile oil companies will not issue allotment letters to new consumers," he said adding the entire process would take 20-25 days.

Source:-The Economic Times 

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