No ban on release of domestic LPG connections: Oil min

Written by fe Bureau | New Delhi | Updated: Sep 29 2012, 07:32am hrs
The oil ministry on Friday has stated that there is no ban on release of new domestic cylinder connections. To ensure that subsidised domestic cylinders are available to genuine customers, new connection requests will be accepted by all LPG distributors, the oil ministry said in a statement.

However, the connections will be issued to customers on completion of Know Your Customer (KYC) formalities.

The three oil marketing companies namely IOC, HPCL and BPCL will ensure that multiple connections are not released and further duplication doesnt take place.

We have identified several lakhs of multiple connections and have given them notices and withdrawn their connections. We have also taken away connections who have been using piped natural gas. The process has started two years back and it is getting implemented in as structured manner, an oil marketing company official said.

The government recently took a bold step by hiking the diesel price and capping the subsidy of LPG cylinders to six per household, its impact on reducing governments fiscal burden is likely to be minimal.

The OMCs serve around 14 crore customers and deliver over 100 crore cylinders per annum across the country.