Lok Sabha Question No. 5781 (UNSTARRED), answered on 2017-04-10
Subject: Subsidy on LPG Cylinder
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HARINDER SINGH KHALSA, SURESH KODIKUNNIL, RAJAN BABURAO  VICHARE

## LOK SABHA

## UNSTARRED QUESTION NO.5781 TO BE ANSWERED ON 10 TH  APRIL, 2017

## SUBSIDY ON LPG CYLINDER

## 5781.   SHRI HARINDER SINGH KHALSA: SHRI KODIKUNNIL SURESH: SHRI RAJAN VICHARE:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

## Will the Minister of PETROLEUM AND NATURAL GAS  be pleased to state:

(a) the total subsidy borne by the Government on each gas cylinder;

- (b) the actual and landed cost including taxes imposed on non-subsidised gas cylinder to a consumer  along  with  gas  subsidy  if  any,  being  provided  by  the  Government  to  the  nonsubsidised consumers;
- (c)  whether the Government has imposed heavy financial penalties on LPG dealers for not delivering LPG within 48 hours time prescribed for the purpose and if so, the details thereof along  with  action  taken  by  the  Government/Oil  Marketing  Companies  under  Marketing Discipline Guidelines in the country including Kerala, case/State/UT-wise;
- (d)  whether  the  Government  has  directed  LPG  producers  to  supply  all  locally  produced cooking  gas  to  State-owned  oil  companies  only  and  if  so,  the  details  thereof  along  with number of cases identified for selling of LPG to parallel LPG marketers in the country; and
- (e) the details and numbers of such parallel LPG marketers identified/ reportedly operational in the country, State/UT-wise?

## ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=h ( Lora= izHkkj ) ¼Jh /keZsUnz iz/kku½

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a): Currently, the Government is providing subsidy of Rs. 249.09/cylinder (14.2 kg) on Subsidized Domestic LPG.
- (b): The  Price  Build-up  of  Domestic  LPG  (Non-Subsidized)  at  Delhi  is  given  at Annexure-I
- (c) to (e): OMCs have reported that they try to meet the demand of LPG consumers within  48  hours.  However,  delay  in  refill  supplies  may  occur  in  the  event  of backlog due to non-availability of filled LPG cylinders with the distributors for unavoidable reasons,  road  breaches,  floods,  strikes,  incidents  of  bandhs,  shortage  of  bulk  LPG,  nonavailability of trucks, etc. and in such situations, bottling plants work on extended hours as well as on holidays to clear the backlog.

Parallel  Marketeer  (PM)  System  was  introduced  in  the  country  in  1993  wherein Parallel  marketers  were  required  to  source  LPG  through  imports  for  their  requirement. Further, Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 and LPG (Regulation of Use in Motor Vehicles) Order, 2001, which were notified in the  year 2000 and 2001 respectively, prohibit sale of LPG by any person other than a Government Oil Company, a parallel marketeer or a distributor to the consumer. Parallel marketeer can source LPG only through imports for sale in domestic market. Domestic producers of LPG need to sell domestically produced LPG only to Government Oil Companies.

Any entity  desiring  to  operate  as  a  parallel  marketeer  of  LPG  is  required  to  obtain certificate  from  any  of  the  four  rating  agencies  mentioned  in  the  Liquefied  Petroleum  Gas (Regulation of Supply and Distribution) Order, 2000 and LPG (Regulation of Use in Motor Vehicles)  Order,  2001  as  applicable.  Further,  the  entity  is  required  to  follow  rules  and regulations  as  contained  in  various  relevant  acts  and  orders  including  the  two  orders mentioned above. A list of PMs holding rating certificate from any of the four rating agencies as on 01.01.2017 is given at Annexure-II.

x-x-x-x-x

## Annexure referred to in reply to part (b) of the Lok Sabha Untarred Question No. 5781 asked by Shri Harinder Singh Khalsa, Shri Kodikunnil Suresh and Shri Rajan Vichare to be answered on 10 th April, 2017 regarding 'Subsidy on LPG Cylinder'.

## Price Build-up of Domestic LPG (Non-Subsidized) at Delhi

(In Rs. / 14.2 Kg. cylinder)

|   Sr. No. | Elements                                                                                                |   Effective 1 st April'17 |
|-----------|---------------------------------------------------------------------------------------------------------|---------------------------|
|         1 | Refinery Transfer Price (RTP) for Domestic LPG(Price Paid by the Oil Marketing Companies to Refineries) |                    547.54 |
|         2 | Add: Marketing cost, freight, bottling charges import cost etc.                                         |                    127.64 |
|         3 | Add : Distributor Commission                                                                            |                     47.88 |
|         4 | Retail Selling Price                                                                                    |                    723.06 |
|         5 | Retail Selling Price at Delhi (Rounded)                                                                 |                    723    |

Annexure-II

Annexure referred to in reply to part (c) to (e) of the Lok Sabha Unstarred Question No. 5781 asked by Shri Harinder Singh Khalsa, Shri Kodikunnil Suresh and Shri Rajan Vichare to be answered on 10 th April, 2017 regarding 'Subsidy on LPG Cylinder'.

|   S.No. | Name of Party                                 | Business Line    |
|---------|-----------------------------------------------|------------------|
|       1 | AEGIS GAS (LPG) PVT.LTD                       | LPG/AUTO LPG LPG |
|       2 | AEGIS LOGISTICS                               | LPG &AUTOLPG     |
|       3 | AXIOM GAS                                     | LPG &AUTOLPG     |
|       4 | BHAGYANAGAR GAS LIMITED                       | AUTO LPG         |
|       5 | BND GAS PVT LTD                               | LPG &AUTOLPG     |
|       6 | CETEX PETROCHEMICALS LIMITED                  | LPG              |
|       7 | CONFIDENCE PETROLEUM INDIA LTD                | LPG &AUTOLPG     |
|       8 | COVAI LPG                                     | LPG &AUTOLPG     |
|       9 | DIVINE ENTERPRISES                            | LPG              |
|      10 | DIYA GAS BOTTLING                             | LPG              |
|      11 | DURABLE GAS                                   | AUTO LPG         |
|      12 | EASTERN GASES LIMITED                         | LPG              |
|      13 | ENERGY INFRASTRUCTURE INDIA LIMITED           | LPG              |
|      14 | ESSEN LPG BOTTLING PVT. LTD                   | LPG              |
|      15 | EVERSHINE PETROLEUM .                         | LPG              |
|      16 | GASPOINT PETROLEUM INDIA LTD                  | LPG              |
|      17 | GILL INTERNATIONAL LIMITED                    | LPG              |
|      18 | HALDIA PETROCHEMICALS                         | LPG              |
|      19 | HEMKUNT PETROLEUM LIMITED                     | LPG              |
|      20 | HINDUSTAN AEGIS PVT LTD                       | LPG              |
|      21 | HINDUSTAN DOMESTIC OIL &GAS CO. (BOMBAY) LTD. | LPG              |
|      22 | INDIAN AUTO GAS COMPANY LTD                   | AUTO LPG         |
|      23 | INDIAN OIL PETRONAS PRIVATE LIMITED           | LPG &AUTOLPG     |
|      24 | INDO BRIGHT PETROLEUM                         | LPG              |
|      25 | INDOGAS                                       | LPG              |
|      26 | JYOTHI GAS PVT.LTD.                           | LPG              |
|      27 | K R FUELS                                     | AUTO LPG         |
|      28 | KABSONS INDSUTRIES LIMITED                    | LPG              |
|      29 | KANODIA PETROLEUM LIMITED                     | LPG &AUTOLPG     |
|      30 | KOTHARI PETROCHEMICALS LTD.                   | LPG              |
|      31 | KWALITY GAS BOTTLERS PRIVATE LIMITED          | LPG              |
|      32 | LATA ENGINEERING                              | LPG              |
|      33 | LEADER GAS &PETROCHEM LTD                     | LPG              |
|      34 | MALABAR FUEL CORPORATION                      | LPG              |
|      35 | MANAS AGRO INDUSTRIES &INFRA LTD.             | LPG &AUTOLPG     |
|      36 | MEENA LPG INDUSTRIES                          | LPG              |
|      37 | MERIYA PETROLEUM PRODUCTS PRIVATE LIMITED     | LPG              |
|      38 | MVRGAS                                        | LPG              |
|      39 | NAVBHARAT L.P.G BOTTLING CO.                  | LPG              |
|      40 | NEON FUEL LIMITED                             | LPG              |
|      41 | PKL LTD                                       | LPG              |
|      43 | PRANIK FUELS                                  | LPG              |

|   44 | PREMIER LPG LTD.                 | LPG &AUTOLPG   |
|------|----------------------------------|----------------|
|   45 | PUTTER PETRO PRODUCTS PVT. LTD   | LPG            |
|   46 | RASHMI GASES PRIVATE LIMITED     | LPG            |
|   47 | RELIANCE INDUSTRIES LTD.         | LPG &AUTOLPG   |
|   48 | RELIANCE PETRO MARKETING         | LPG            |
|   49 | S S LPG                          | LPG            |
|   50 | SAMRIDDHI PETRO PRODUCTS PVT LTD | AUTO LPG       |
|   51 | SHIVACO ASSOCIATES               | LPG            |
|   52 | SHIVAM ENERFUEL PVT LTD          | LPG            |
|   53 | SHV ENERGY PRIVATE LIMITED       | LPG &AUTOLPG   |
|   54 | SHV LPG INDIA PRIVATE LIMITED    | LPG            |
|   55 | SNEHA PETROLEUM                  | LPG            |
|   56 | SREE LPG PVT. LTD.,              | LPG &AUTOLPG   |
|   57 | SREE SURYA PETROLEUM             | LPG            |
|   58 | SRI BALAJI GAS BOTTLING CO.,     | LPG            |
|   59 | SURYA PETROLEUM PRIVATE LTD.     | LPG            |
|   60 | TARAA LPG BOTTLING PVT. LTD      | LPG            |
|   61 | THAKUR PETROCHEMICALS            | LPG            |
|   62 | TOTAL OIL INDIA PRIVATE LIMITED  | LPG &AUTOLPG   |
|   63 | VANAZ ENGINEERS LTD.             | AUTO LPG       |
|   64 | VIKAS LPG BOTTLING               | LPG            |
|   65 | VINDHYACHAL GASES                | LPG            |
|   66 | VISHAL GASES PRIVATE LIMITED     | LPG            |