LPG dealer portability

Cooking gas is a critical consumer item. Price of LPG cylinder has been fluctuating and only recently the Union Government took the harsh decision of hiking the price of cooking gas as well as capping the number of gas cylinders per unit. This has caused much anxiety to consumers. Parliamentarians and public leaders have repeatedly demanded that the Government revise the new rules, reduce the hike in price of a gas cylinder and allow at least 12 gas cylinders per unit per year. However, the compulsions of the Government are such that public protest could cut no ice. The case of our State is more critical in comparison to many other states because we are also affected by acute shortage of electric power. J&K is a hilly state and much of it is cold and snowy in winter. As such it needs more energy for heating as well as cooking.
It is now learnt that although the Government has not made any concession in new rules of supply of cooking gas, nevertheless, Oil Minister Veerappa Moily has announced some reforms in the distribution of LPG cylinders. One reform that has been launched in Chandigarh and is expected to cover entire country in due course of time is that consumer can change the dealer from whom he has been buying the gas. It is almost like changing the cellular company according to one’s choice. However there will be difference between the change of cellular provider and that of LPG cylinder provider. While in former case a person can change from one company to other without changing the number and after paying a small fee. In the case of LPG dealer portability, one cannot change the company while changing a dealer. Two main reasons have been cited for dealer portability. First is that the present arrangement helps a dealer acquire monopoly status because his is the only outlet available in the locality. The purpose, as rightly hinted at by the Minister is to break the monopolistic tendency. Second and equally important is that a consumer will prefer to buy the cylinder from a dealer who is closer to him physically. For this purpose, there will be clusters of 2-3 dealers in a locality in a given district. The Oil Minister announced in Chandigarh that about 2500 new gas outlets meaning dealers will be provided. Portability of dealers will help consumers obtain cylinders from a dealer who is rated 5. The formula of rating the dealers is that if a dealer supplies 85 per cent of cylinders within the duration of two days, he is rated 5 stars and any dealer supplying 85 per cent cylinders in 10 days will be rated zero. The rating will help consumers determine which supplier he would like to deal with. Obviously, the promptness of service will be a deciding factor with consumers. The department will maintain a record of performance and this will be made public periodically.
The Oil Minister announced that the entire supply system will be digitalized in a phased manner so that the consumers are able to know the status of their booking of cylinders and related things. It is also learnt that the Government will also examine the matter of change of Oil Company as in the case of cellular phones. Reports say that there are some legal difficulties in changing the company because under existing rules a cylinder has to be brought to the same company for refilling. But the Government is considering how the rules can be changed to make such a facility available.
Though the Oil Ministry has put heavy burden on the shoulders of ordinary consumers by hiking the price of cooking gas cylinders and capping the number, it is also looking how some convenience can be provided to the consumers to lessen the hassles through which one is obliged to go. LPG dealer portability is meant to provide better service to 13.5 crore LPG consumers in the country and the minister hopes that in phased manner, the scheme will cover all the LPG consumers in the country.
We know these and other measures will bring relief to the consumers to some extent. In the meanwhile positive reforms of supply of gas as are underway are to be appreciated.