The government has ordered LPG producers to supply all the cooking gas (LPG) they produce locally to state-owned oil companies only, and has asked the private retailers to source their requirements through imports. The Ministry of Petroleum and Natural Gas, in an order said that sale of indigenously produced LPG is not permitted to the entities other than government oil companies and all domestically produced liquefied petroleum gas should necessarily be sold to PSUs for subsidised sale to consumers.
The ministry further stated that instances have been noticed of all locally produced LPG not being sold to oil marketing companies - IOC, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) and some domestic LPG is also being sold to parallel marketeers in violation of Ministry’s order and held that sale of LPG by domestic producers to anyone other than state-owned oil marketing companies (OMCs) is not permissible under LPG control order. The ministry has asked all LPG producers including Oil and Natural Gas Corp (ONGC), GAIL India and RIL as well as parallel marketeers to comply with the order.
As per the control order non-state LPG sellers or parallel marketeer cannot source the fuel from domestic refiners. They have to import LPG if they intend to sell the cooking fuel in domestic market. The LPG control order of 2000 defines parallel marketeer as someone who is carrying on business of importing, storing, transporting, marketing and distributing of LPG. It does not prohibit the parallel marketeer from producing LPG but it cannot sell such production directly to consumers.
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