Tuesday, 02 January 2024 12:17 GMT

You Can Switch Your LPG Provider Without Hassle? What Is LPG Portability? Key Faqs Answered


(MENAFN- Live Mint) In a significant move aimed at improving consumer choice and service standards, the Petroleum and Natural Gas Regulatory Board (PNGRB) is working on an LPG Interoperability Framework that will allow cooking gas users to switch between LPG suppliers - a system similar to mobile number portability in the telecom sector.

This could mean that a household using Indane Gas could, in the near future, seamlessly switch to Bharat Gas or HP Gas without having to surrender their existing connection.

PNGRB has now invited public comments on this proposal, with a rollout expected after final rules are framed.

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According to PNGRB, while India has achieved near-universal LPG household coverage with over 32 crore active connections, consumer grievances continue to remain high.

“Persistent consumer grievances remain over 17 lakhs annually,” the board said in its notice.

Many complaints relate to supply delays and service disruptions, with some areas facing weeks-long wait times for cylinder refills.

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PNGRB highlighted that consumers are often left with no alternative when their local distributor faces operational issues, leading to significant hardship.

“There may be other reasons, too, and the consumer needs to have the freedom of choice on the LPG company/dealer, especially when the cylinder price is the same,” the regulator stated.

What was the earlier LPG portability scheme?

The concept of LPG portability is not entirely new.

In October 2013, the then UPA government launched a pilot project in 24 districts across 13 states, later expanding it nationwide in January 2014.

However, this earlier scheme only allowed dealer-level portability within the same company.

Example:

A customer of Indane Gas could switch to another Indane dealer, but not to Bharat Gas or HP Ga .

This limitation was due to laws mandating that LPG cylinders could only be refilled by the company that issued them.

Also Read | LPG rates revised from today: OMCs cut commercial gas cylinder price by ₹51.5 How will the new inter-company LPG portability work?

The proposed framework aims to remove this restriction, enabling consumers to switch between different oil marketing companies (OMCs).

“To strengthen continuity of LPG supply and safeguard consumer trust, PNGRB invites views and suggestions from consumers, distributors, civil society organisations, and other stakeholders on measures that could facilitate timely access to refills,” the board said.

The regulator is exploring ways to allow a consumer to receive LPG refills from the nearest available distributor, irrespective of the company, especially during service disruptions or peak demand periods.

This means:

If your local Indane distributor is out of stock, you could temporarily get a refill from Bharat Gas or HP Gas.

If you are dissatisfied with the service, you could permanently migrate to another company without replacing your equipment.

Also Read | Higher LPG compensation is positive for OMCs, says JM Financial Why is this important for consumers?

A recent spike in service complaints has highlighted the need for a continuity-focused system.

“Recent reports from various regions have highlighted a number of cases of supply disruptions and prolonged delays in LPG refill deliveries, in some cases extending to several weeks,” PNGRB said.

Such problems have adversely impacted households and commercial establishments, particularly where there are few distributors.

LPG portability will:

  • Increase competition between suppliers
  • Reduce wait times for refills
  • Improve accountability and service quality

Current SystemFuture System
Indian user – ONLY Indane Dealer Indane User – Indane /Bharat Gas / HP (Choice of nearest diustributor)
📈 Key Numbers
  • 32 crore LPG connections in India
  • 17 lakh+ complaints annually
  • Earlier portability scheme covered 480 districts
  • Average of 4 distributors per cluster in 2014
What happens next?

PNGRB has opened the floor for public feedback, allowing consumers, civil society groups, and other stakeholders to submit suggestions by mid-October.

Once comments are reviewed:

The board will draft final rules and guidelines.

A nationwide rollout date will be announced.

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