Lok Sabha Question No. 3329 (UNSTARRED), answered on 2025-03-20
Subject: Irregularities in Distribution, Supply and Pricing of Petroleum and Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Brijmohan Agrawal

## LOK SABHA UNSTARRED QUESTION NO. 3329 TO BE ANSWERED ON 20 TH  MARCH, 2025

## Irregularities in Distribution, Supply and Pricing of Petroleum and Natural Gas

†3329. Shri Brijmohan Agrawal:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a)   whether the Government is aware that irregularities are occurring in the distribution, supply and pricing of Petroleum and Natural Gas in Chhattisgarh, if so, the details thereof;
- (b)   whether the Government has received any complaints regarding short measuring/weighing, black marketing and illegal supply by the petrol pumps, gas agencies and dealers, if so the details thereof;
- (c)   whether it is true that several industrial units and commercial establishments are illegally using domestic LPG cylinders, causing harm to the general public, if so, the details thereof; and
- (d) whether the Government  is considering sending a central agency for a thorough investigation of these irregularities and taking strict action against the culprits and if so, the details thereof?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी (ŵी सुरे श गोपी)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (d)    The  Government and Public Sector Oil Marketing  Companies  (OMCs) periodically  receive  complaints  from  all  over  India  including  the  State  of  Chhattisgarh regarding various issues relating to, inter alia, short measuring/weighing, black marketing, illegal supply by the Retail Outlets (ROs), LPG Distributorships.

Complaints of irregularities/ malpractices received / detected at the OMCs' ROs and LPG godowns and showrooms of LPG distributorships in States/UTs including Chhattisgarh are looked  into  and  punitive  action  taken  in  established  cases  as  per  Marketing  Discipline Guidelines (MDGs) and  Dealership/Distributorship Agreement.

In order to stop black marketing (overcharging and diversion) of domestic LPG cylinders, the  Government  has  enacted  'Liquefied  Petroleum  Gas  (Regulation  of  Supply  and Distribution)  Order,  2000'  and  formulated  'Marketing  Discipline  Guidelines'  which provides  for  penal  action  against  LPG  distributors  indulging  in  various  irregularities  in marketing of LPG. Central Government, from time to time, has also issued various control orders under Essential Commodities Act like Motor Spirit (MS)/High Speed Diesel (HSD) Control  Order,  Kerosene  Control  Order,  Naphtha  Control  Order,  Solvent,  Raffinate  and Slop Control order etc. with a view to preventing adulteration in petroleum products and other malpractices.

In addition, Regular/Surprise inspections are carried out by OMCs' Field Officers /Senior Officers/Mobile  Laboratory  officials/Quality  Reassurance  Cell  at  ROs  throughout  the country including the State of Chhattisgarh to detect irregularities/ malpractices. Regular/surprise inspections are also carried out by OMC's  Field Officers, Anti Adulteration  Cell  and  Vigilance  Department  at  LPG  godowns  and  showrooms  of  LPG distributorships.

OMCs have taken action against ROs in 1426 established cases in the State of Chhattisgarh during the last 3 years and current year (April to Dec 2024). OMCs have imposed penalties in 189 established cases of irregularities in marketing of LPG (refill distribution, supplies and  pricing)  such  as  diversion  of  LPG  refills  (unaccounted  sale  of  domestic  LPG cylinders),  overcharging  on  refills  /  new  LPG  connections,  non-compliance  of  Cash  and Carry rebate to the customers, supply of underweight cylinders in the State of Chhattisgarh during the last 3 years and current year (April to Dec 2024).

Further, various initiatives have been taken by the Government viz. capping on supply of subsidized  cylinders,  de-duplication,  `PAHAL'  for  direct  transfer  of  subsidy  to  the consumer  which  helped  in  identifying  'ghost'  accounts,  multiple  accounts  and  inactive accounts.  This  has  also  helped  in  curbing  diversion  of  subsidized  LPG  to  commercial purposes and KYC exercise etc. which reduce the misuse and diversion of subsidized LPG cylinders.

OMCs have adequate monitoring mechanisms for identifying and checking adulteration in petroleum products. This is a continuous process and OMCs have been taking various steps to curb adulteration and other malpractices.

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