‘Black-marketing of LPG cylinders costing nation Rs 14,000 cr annually’

Source: The Hitavada      Date: 13 Jan 2018 10:25:23


Staff Reporter,

Jansamsya Nivaran Samiti has slammed the decision of Central Government to limit subsidy on LPG to just six cylinders in a financial year, saying this is nothing but an attempt to wash off the massive cornering of subsidy through black-marketing of cylinders. The Samiti has assumed that of the 117 crore LPG cylinders that oil companies claim to provide in country, nearly 42 crore cylinders are diverted to unauthorised use. And this diversion alone causes loss of Rs 620 crore to State exchequer and asked who is to be blamed for this mess.

Giving a break-up of the case, N L Sawarkar, General Secretary, Jansamsya Nivaran Sangarsha Samiti, claimed that as per Government claim there are 7.50 crore families are using LPG connection then how come 14 crore cylinders are being distributed. As per norms, there should be 1 gas connection per one home and that's why Sawarkar claims nearly 42 crore cylinders every year are getting circulated in grey market. These cylinders are being used in big hotels, big restaurants, and no one has bothered to put them to stop, nor the Supply Division nor the oil companies nor the police machinery. Also many of the four wheelers are illegally plying with domestic LPG cylinders as it is cheaper than the petrol and diesel. To cater to this huge grey market, oil companies have issued additional 6.5 crore LPG connection most of which are bogus, Sawarkar went onto claim through the above mentioned logic.

Sawarkar further contended that each of the family on average may be using nine to ten cylinders per year so yearly 75 crore LPG cylinders must be in supply but on record of oil companies there is sale of 117 crore cylinders which is quite surprising. By this logic every year Rs 14,000 crore extra money was minted in the grey market which till dates comes to whopping Rs 6.20 lakh crore. And here Government claims that due to subsidies supply of cylinders it is leading to revenue shortfall of Rs 42,000 crore and hence they are increasing the LPG prices. But in the process, increased prices of LPG is pushing it out of reach of economically weaker sections and burdening middle class.