Reports indicate that the government is considering the proposals of liquefied petroleum gas (LPG) distributors seeking key changes on the proposed distribution policy.
During a recent presentation to the union petroleum and natural gas ministry, the distributors called for raising the present ceiling for refill sales by 50 percent. The distributors argue that the existing ceiling on refills is based on the population of an area, and has not changed since 2000. The ceiling limit was last revised in 2000, based on the Census report of 1991.
Distributors apprehend that the dealership business will take a hit if the government allows public sector oil marketing companies to expand their network without revising the existing limit on sale of refills.
The distributors also asked the government to avoid setting up an LPG distributor in an area where piped gas is available as it does not make business sense. Therefore, the oil retailers should be rational in deciding the areas for expanding network, distributors argue.
Government has to ensure that the proposed policy does not affect the existing network, and at the same time brings about better customer service, distributors opine.
Before expanding the network of distributors, industry players want the government to review the proposed distributor policy on the above lines. Based on a new set of guidelines, the union petroleum ministry allowed the appointment of new regular distributors in April 2013. If the oil marketing companies go ahead with the new guidelines, the existing regular distributors will face a lot of hardship, industry players argue.
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