Oil companies told to fast track appointment of new LPG dealers

Akhoon for streamlining home delivery of gas


Srinagar, Dec 13: To streamline the gas distribution, J&K government has asked the oil companies to fast track appointment of new dealers in Srinagar and Jammu cities as also in each block of the state.
 “I have directed the oil companies to expedite the process for setting up new gas agencies in JK. We have given them time up to January end for seeking bids from interested parties for new agencies,” Qamar Ali Akhoon, Minister for Consumer Affairs and Public Distribution (CAPD) told Greater Kashmir.
 “Every block will have one gas agency and in Srinagar and Jammu cities we have directed the CAPD directors of both Kashmir and Jammu to come up with report and verify the areas where there is need of further agencies,” Akhoon explained.
 Pertinently cap on distribution of subsidized LPG cylinders by government of India has hit the Valley badly. The genesis of the lingering cooking gas crisis in Kashmir has been attributed to limited number of dealers in the summer capital.
 The restricted number of LPG dealers, who monopolize the supply of cooking gas in the Valley, is in fact the major contributory factor to the problem haunting the consumers here, experts have said.
 Surprisingly, there are only 43 gas dealers operating in the Valley while as per all India norms there should have been around 1700 distributors in Kashmir to cater to the requirement of 10 lakh LPG consumers. As per the current dealer-consumer ratio, every dealer in the valley on an average caters to around 23,000 consumers while as per all India norms a dealer has to cater to 600 consumers.
 “The dealers are entitled to a profit margin of Rs 37 per LPG cylinder and normally each gas dealer sells around 600 to 1000 cylinders a day. That means they earn more than Rs 20,000 per day,” sources said adding that they (gas dealers) fear if more dealers join the market their earnings will drop.
 On being asked about the opposition by gas agencies to the setting up of new outlets, Akhoon said: “We have to think about the interest of the people and if people are suffering due to any reason we can’t compromise on it.”
 Meanwhile, Akhoon today exhorted upon the Oil Companies functioning in the State to further speed up the process of updating the Know Your Customer (KYC) forms within next one month so that the consumers don’t suffer in getting cooking gas.
 The Minister emphasized the need of greater coordination among all concerned agencies like government departments and oil companies to extend enhanced basic services like cooking gas to the people. He also asked the officers to ensure that the consumers get hassle free LPG supply besides keeping a strict vigil over black-marketing of the same.

Lastupdate on : Thu, 13 Dec 2012 21:30:00 Makkah time
Lastupdate on : Thu, 13 Dec 2012 18:30:00 GMT
Lastupdate on : Fri, 14 Dec 2012 00:00:00 IST

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