BackCooking gas users may get to switch service providers
Indian Oil, Hindustan Petroleum and Bharat Petroleum are jointly developing software to bring their entire LPG business data on the same platform, the people cited above said on condition of anonymity
PremiumNEW DELHI : Cooking gas users may be able to seamlessly switch service providers soon just like they do with their mobile phone numbers, three people aware of the development said, with the government working to bring the household gas supply business of state-owned fuel marketers on the same platform.
Under the plan, a liquified petroleum gas (LPG) connection from Indian Oil Corp. Ltd can be transferred to Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL), or vice versa.
The three fuel retailers are jointly developing software to bring their entire LPG business data on the same platform, the people cited above said on condition of anonymity.
This assumes significance given that India has 291.1 million LPG customers as of 1 July. Presently, the fuel retailers allow their customers to choose the LPG distributor for cylinder refills and online transfer of the connection to another distributor serving in the same area of their own network.
“A common database for LPG connection portability is being created," said a senior government official, one of the three people cited above.
While portability within a fuel retailer’s network is online and seamless, that’s not the case if one needs to switch to another provider.
The process involves a physical surrender of the connection first and then going for a connection with the LPG distributor of another retailer, which at times becomes tedious and time-consuming.
“In case of inter-company connection transfer, both parent and destination distributor get advance intimation about consumer’s transfer request with tracking options for customers. However, the customer needs to visit the parent distributorship for surrendering of LPG equipment as accounting of equipment and security deposit is involved," the oil ministry said in a 24 June 2019 statement.
“Right now, portability is there within a company, where you can shift from one dealer to another. After this, there will be portability across companies," the second person cited above added.
“The tender has been invited to make the portability process between OMCs seamless. It is expected to be implemented in this financial year," said a petroleum and natural gas ministry official, the third person cited above.
Queries emailed to the spokespersons of IOCL and HPCL late Tuesday remained unanswered till press time.
“Presently, OMCs allow their customers to choose the LPG distributor for cylinder refills, and also allow online transfer of LPG connection to another distributor within the same OMC," a BPCL spokesperson said and added, “There is no common LPG connection portability plan as on date. A common database is still under development."
The government is looking at granting similar portability privileges to electricity consumers through the Electricity (Amendment) Bill, 2021, that entails de-licensing the power distribution business and making the sector more competitive. The bill was expected to be passed in the monsoon session of Parliament but wasn’t introduced.
The LPG connection portability plan comes against the backdrop of Pradhan Mantri Ujjwala Yojana, a government programme that aims to provide free cooking gas connections to poor families, increasing India’s LPG coverage to 99.5% on 1 January this year from 61.9% as of 1 April 2016.
Pradhan Mantri Ujjwala Yojana, launched on 1 May 2016, aims to safeguard the health of women and children and lays the basis for a fundamental material transformation at the bottom of the pyramid by covering 715 districts. Cash assistance is given to the beneficiaries to get a deposit-free new connection, helping improve energy access. Also, the connections are given in the name of the women heads of the households.
India’s domestic cooking gas price was increased again on Wednesday by ₹25 per cylinder. Effective 1 September, the price of a 14.2kg LPG cylinder in Delhi is ₹884.50
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