New LPG policy pushes up petrol sales in JK
Srinagar, Jan 26: Sale of petrol in Jammu and Kashmir has witnessed surge after the recent LPG policy came into effect which did disincentivize the use of gas in the vehicles.
According to data available with Greater Kashmir the three oil companies operating in the state have collectively sold around 340 lakh litres of petrol during October and November clocking business of more than Rs 250 crore.
“As per the estimates based on sales figures of the past year plus normal annual growth, the petrol sales should have been around 160 lakh litres per month during October and November last year, but with the LPG policy making it difficult for vehicle owners to use LPG as a fuel, sales of petrol have increased by at least 10 lakh litres per month,” said an official of Oil company working here.
The LPG policy came into effect from October which restricted the subsidy on cooking gas to six cylinders (later enhanced to nine cylinders) in a financial year.
The official said the average sales of petrol per month in October and November 2011 were around 150 lakh litres per month.
“As per the norms of the oil market, the companies were expecting sales to be around 160 lakh litres during the corresponding period last year. But during October and November oil companies in the state witnessed increase of more than 10 lakh litres per month above normal growth,” he said, adding that the increase in the demand and sales has brought additional Rs 7 crore per month business to the oil companies.
Pertinently increasing in the sales of petrol can also be attributed to the fact that pre-2000 there were only 56 retail outlets of petroleum in the Kashmir valley but during the last 12 years the number has increased to 203 in Valley alone, while the overall number of outlets in the state is 477.
However according to the officials of oil companies, the sales of petrol witnessed downward trend during the month of the December which according to them is due to the LPG being once again used as fuel in vehicles as most of the consumers have fulfilled KYC formalities and can easily get the LPG cylinders.
Lastupdate on : Sat, 26 Jan 2013 21:30:00 Makkah time
Lastupdate on : Sat, 26 Jan 2013 18:30:00 GMT
Lastupdate on : Sun, 27 Jan 2013 00:00:00 IST
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