LPG distributors write to Petroleum Minister for revision of commission

President of All India LPG Distribution Federation Verinder Kumar addressing a press conference at Jammu.
President of All India LPG Distribution Federation Verinder Kumar addressing a press conference at Jammu.

Excelsior Correspondent

JAMMU, Apr 28: All India LPG Distribution Federation (NWR) which represents distributors of Jammu & Kashmir, Ladakh, Punjab, Himachal Pradesh, Haryana and Chandigarh has projected their various issues including revision of distributors’ commission and MDG guidelines in a letter written to Hardeep Singh Puri (Minister of Petroleum & Natural Gas).
Disclosing this in a press conference held here today, president of the Federation, Verinder Kumar said that the as the oil companies have not compensated the distributors for the increased costs for the last two and half years as per the agreed formula by the Oil companies and MOPNG, the Federation has requested the Minister of Petroleum & Natural Gas to revise the distributors’ commission as the delay in revision of commission is resulting in lowering of service standards. Click here to watch video
He said with transformation of LPG from being scarce to a commodity of abundance, Direct Beneficiary Transfer of Funds, free availability of LPG connections, many of the Marketing Disciplinary Guidelines (MDG) introduced in the year 1982 have become redundant and irrelevant, and need to be removed. It was further submitted that monetary penalties be abolished or minimal and rational monetary penalties should be imposed.
“While there has been an orderly progression in domestic LPG trade owing to an integrated KYC-based database management system, paving the way for greater transparency through IVRS, digitalization and delivery authentication, there is poor or no regulatory control in the non-domestic LPG sector with rampant duplication of non-domestic customers,” he alleged.
In view of these irregularities in marketing of non-domestic LPG, Kumar said the Federation has suggested the Minister for implementation of KYC based management system, elimination of discounts to consumers to stop crisscross movement of customers, de-duplication of customers during enrolment of non-domestic customers, restricting the scope of Bas to bulk industrial sales, fixation of remuneration separately for Bas as per their scope of work and quantum, making computerized & oil-company centralized GST bill mandatory for non-domestic LPG sales and ensuring 100 % digitization of payments in NDNE LPG trade.