These 8.4 Crore LPG Customers May Not Get Gas Cylinder In Future, Government Took This Step
The government is privatizing BPCL. The government will raise money by selling its shares. After this, 84 million customers of BPCL may find it difficult to get LPG cylinders. Because about two decades ago the government had given an order regarding LPG. According to this, the supply of LPG produced in the country will be limited only to the state-owned oil companies. The order has put a hurdle in the plan to allow Bharat Petroleum Corporation Limited (BPCL Privatisation) to continue selling subsidized LPG after privatization.
21 Million Ujjwala Customers
Two government officials said that legal opinion has now been sought to ascertain whether the allocation of LPG produced by companies like ONGC and GAIL to BPCL after privatization would be correct. At present, BPCL has over 8.4 crore domestic LPG customers. Of these, there are 2.1 crore Ujjwala customers. For this the LPG production of the company’s own oil refining units is not sufficient.
Indigenous LPG Production
BPCL, like other oil marketing companies, buys cooking gas from state-owned companies such as Oil and Natural Gas Corporation (ONGC) and GAIL (India) Limited as well as private companies like Reliance Industries Limited. The LPG (Regulation of Supply and Distribution) Order, 2020, popularly known as the LPG Control Order, 2000, applies only to the government-owned oil marketing companies – Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL) and Provision for sale of indigenously produced LPG to BPCL.
Use Of Imported LPG
The order bars LPG produced by companies like ONGC and GAIL from being supplied to private companies. Private sector LPG vendors have to use imported gas. The Control Order, 2000 was issued in view of the shortage of LPG in the country. Officials said once BPCL is privatized, the order will bar ONGC and GAIL from selling LPG to BPCL. Therefore, the government is seeking legal opinion on this issue.