Domestic LPG refills find way to commercial centres
Source: The Sangai Express
Imphal, February 04 2022:
Use of subsidised domestic LPG refills of 14.2 Kg capacity in commercial centres like hotels, chicken centres and hostels run by private individuals and the Government has been rising substantially.
Both registered and unregistered hotels, chicken centres and hostels should use commercial LPG refills of 19 Kg capacity.
Subsidised domestic refills of 14.2 Kg capacity are meant for economically weaker sections of the society.
Following a report that sale of commercial refills at IOCL's LPG distributors has dropped dramatically, The Sangai Express carried out an independent survey and it was found that majority of the commercial set-ups like hotels, chicken centres and hostels have been using subsidised refills even though they should be using the commercial refills.
There are two main reasons for using subsidised refills in place of commercial refills at commercial set-ups.
The first reason is the augmentation of the Sekmai LPG bottling plant by adding two new storage tanks and rise in the number of bullet TTs which enhance LPG supply to the State.
The second reason is the muhc lower price of the subsidised refill.
As per the new prices of LPG refills revised by the Government for the month of February, commercial refills of 19 Kg capacity costs Rs 2263 while the subsidised domestic refill of 14.2 Kg capacity costs Rs 1051.50 .
According to the revised rates, commercial LPG costs Rs 119.13 per Kg while domestic refill costs Rs 74.05 per Kg which means there is a difference of Rs 45.08 in one Kilogram.
This is one fundamental reason for commercial set-ups to use domestic refills in place of commercial refills.
Subsequent upon enhancement in the LPG supply, LPG distributors are now issuing refills to anyone who bring LPG cards.
Use of domestic refills at those place where commercial refills should be used entail losses to the Government on two counts.
The Government loses the subsidy given to the domestic refills as well as the tax levied on commercial refills.
Checking use of domestic refills at commercial set-ups instead of commercial refills is not the responsibility of the Indian Oil Corporation Limited.
It is the duty of the CAF&PD Department.
One IOCL official told The Sangai Express that matter of using domestic refills extensively at commercial set-ups was raised at a meeting held with the Chief Secretary but any tangible action is unlikely until the end of the election process.