5-kg LPG cylinders could be sold at Kirana stores soon

Moneycontrol BureauKirana stores could soon be selling free-trade 5-kg LPG cylinders (FTL) if the Ministry of Petroleum and Natural Gas gives its consent to a request by state-owned oil companies in a bid to cut down on the illegal sale of cylinders, reports the Financial Express.

Oil marketing companies like Indian Oil, Hindustan Petroleum and Bharat Petroleum have been seeking permission to sell FTL cylinders from kirana stores without licence using ferry trucks as mobile points of sale. 

Currently, the matter is under consideration of the Petroleum and Explosives Safety Organisation (PESO), an arm under the Department of Industrial Policy and Promotion. PESO, which is responsible for safety of public and property from fires and explosions, has shown reservations. It is in this regard that the companies are seeking intervention of the ministry.

In July 2013 the government had approved the FTL scheme for selling these cylinders through company-owned retail outlets of OMCs.

The 2004 Gas Cylinder Rules allowed storage of up to 100 kg, or 20 cylinders of 5 kg each, at the licensed outlets of OMCs. However, in 2016, the rules were revised to allow 100 kg of LPG to be stored only for one’s own consumption and not for sale.

As part of its initiative to promote cleaner fuels for cooking, the government increased budgetary support under the Pradhan Mantri Ujjawala Yojana to Rs 2,500 crore for financial year 2017-18 from Rs 2,000 crore in the previous fiscal.