Winning Bizness Desk
Mumbai.Soon, consumers may be able to switch their LPG gas connection between companies, similar to mobile number portability. The Petroleum and Natural Gas Regulatory Board (PNGRB) has initiated steps to implement this change. The move aims to offer customers greater choice, improved service quality, and relief from delays in receiving refills.
Current System Allows Only Dealer Change
At present, LPG portability is limited to changing dealers within the same company. The pilot scheme for LPG portability was launched in October 2013 by the UPA government in 24 districts across 13 states and expanded to 480 districts by January 2014. However, under this scheme, consumers could only switch to another dealer of the same company. For instance, an Indane customer could not move to a different gas company.
Why Inter-Company Portability is Needed
The existing restriction exists because regulations require cylinders to be refilled only by the issuing company. Operational problems at local distributors often cause customers to face long delays, sometimes stretching to weeks. PNGRB emphasizes that customers should have freedom of choice, especially since cylinder prices are the same across companies. Inter-company portability will allow customers to seek refills from nearby distributors of other companies if their usual dealer is unable to provide service.
Implementation Timeline and Feedback
PNGRB has invited feedback from stakeholders, consumers, distributors, and civil society. The deadline to submit comments is mid-October. Once inputs are received, rules and guidelines will be finalized, followed by the nationwide rollout. Specific details regarding how consumers can switch between companies will be announced later, as the process is still being developed.
Major Gas Companies in India
Currently, three major government-owned Oil Marketing Companies (OMCs) provide LPG connections: Indian Oil Corporation Limited (IOCL), supplying Indane cylinders with the largest distributor network; Bharat Petroleum Corporation Limited (BPCL), offering connections under Bharat Gas; and Hindustan Petroleum Corporation Limited (HPCL), providing HP Gas connections nationwide. These companies dominate the domestic and commercial LPG market in India.
Currently, three government companies provide connections in the country
1) Indian Oil Corporation Limited (IOCL):This is the largest company, supplying LPG cylinders across the country under the brand name Indane. Indane has the highest number of distributors.
2) Bharat Petroleum Corporation Limited (BPCL):This is the second-largest company, providing both domestic and commercial connections under the brand name Bharat Gas.
3) Hindustan Petroleum Corporation Limited (HPCL):This is the third government company, offering LPG connections under the brand name HP Gas. It is also active throughout India.
