Restrictions on new LPG connections to go

02 August 2008

New petroleum secretary R S Pandey, who took over reins from M S Srinivasan, has directed oiil marketing companies (OMCs) not to put any restrictions on ''release and registration'' of new LPG connections and resume issuing new domestic LPG connections.

He issued these directives at a meeting of officials from three public sector oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum -- as a backlog of nearly 2.5 lakh new consumer applications waiting LPG connections had been created.

These connections were suspended by the public sector oil marketing companies since April following liquidity crunch and a huge shortfall of LPG gas cylinders (See: PSU oil marketing companies propose fuel rationing, halt to new LPG connections) 

Pandey assured the OMCs that he would prioritise and address the problem of liquidity crunch .

Since IOC and Bharat Petroleum Corporation had reported a shortfall of 10 lakh and 5 lakh LPG cylinders respectively, Pandey directed them to purchase additional cylinders to overcome the shortfall and hoped that the backlog would be wiped out in the next two months.

Hindustan Petroleum Corporation Limited said it had adequate stocks of cylinders.