Attributed to weeding illicit domestic connections
Morung Express News
Dimapur | August 13
Domestic LPG connections have reportedly reduced by a whopping 22 lakh in the North-East. According to Chief General Manager (LPG), Northeast, IOC, Amarjyoti Bordoloi, it happened after the strict implementation of measures to curb illicit diversion of subsidised cooking fuel.
Bordoloi made the revelation at a Commercial Stakeholders (distributors Meet in Dimapur on August 13. the programme also coincided with the launch of the IOC’s Indane Xtralite Now 10 kg lightweight composite LPG cylinder in Nagaland.
He said, “After Delivery Authentication Code (DAC) and e-KYC protocols were strictly enforced, 22 lakh (connections) have vanished.” Before this, he said that the IOC had in its registry between 46 to 48 lakh domestic LPG connections in the north-eastern region. No Nagaland specific figures were provided
The sudden drop was attributed to weeding out of illicit connections with Bordoloi stating that the e-KYC and DAC processes were introduced to “regulate the LPG supplies channel and ensure that it goes only to the right consumer.” Per his estimate, 30 percent to 40 percent of subsidised domestic LPG was being diverted for commercial use.
India imports 60 percent to 65 percent of its LPG requirement. The Government of India put in place restrictions in LPG distribution as oil marketing companies grappled with financial losses following the Israel-USA-Iran conflict. Bordoloi said that the geopolitical tension forced the IOC to buy spot-market LPG at rates 200 to 300 times higher than long-term contract prices. It translated into a loss of about Rs 1000 per cylinder when selling domestic LPG at the subsidised rates against an actual supply cost tipped at around Rs 2,000. Under normal market conditions, he said that the company was absorbing Rs 550 per cylinder.
With curbs in place for registration of new subsidised domestic connections, Bordoloi said that the IOC launched its premium 10-kg Xtralite Now composite cylinder in Nagaland to address unmet demand. Built from polyurethane polymers, the translucent, rust-free cylinder is blast-proof and melts rather than exploding in fires. The translucent cylinder allows consumers to monitor the liquid LPG level inside. The cylinder weighs 6 kg empty and comes with a three-hour delivery guarantee via the Indian Oil One app, requiring only standard identity and address proofs.
Bordoloi warned IOC LPG distributors and delivery staff against selling domestic cylinders to commercial buyers. Under the company's Marketing Discipline Guidelines, violators face a Rs 3700 fine.
In the programme was also present the Director of Food and Civil Supplies, Nagaland, Warren Hollohon Yepthomi. Yepthomi commended the introduction of the blast-proof lightweight LPG cylinder, while reminding that fire hazard has been a big concern due to frequent fires, which are often worsened by explosions of the standard metal cylinders.
He said that it would also address long-standing customer doubts regarding accurate gas weight. "It is going to become very convenient for our people,” he said, while stating that the minimal documentation and app-based dispatch will make ordering LPG simple.
