Karnataka LPG distributors threaten to stop delivery of cylinders from Oct 1

LPG distributors in Karnataka on Saturday said they would stop delivery of cooking gas cylinders for domestic consumers from October 1 to highlight their problems and press the demand for revision of commission.

The distributors' commission which is Rs25.03 for a 14.2 kg cylinder had not been revised for the last three years, despite the oil companies sending a proposal to the government seeking enhancement, Karnataka Circle of All India LPG Distributors Federation President Radhakrishna and Secretary N Sathyan told a press conference in Bangalore.

The new directive by the government of capping supply of subsidised LPG cylinders at six per customer will create several problems for distributors, they said and wanted the government to adopt a single price policy.

Sathyan said the government can transfer the subsidy to eligible people to their bank accounts directly.

The Federation, however, welcomed the decision but regretted it was taken in a haste without consulting the distributors, he said.

LPG trade is reeling under the pressure of dual pricing and now, with the introduction of "five" price mechanism (five different prices for different categories), the "menace of diversion" will only increase, Sathyan said.