LPG value reduce leaves distributors in lurch
4 min read
Express News Service
BHUBANESWAR: Even because the Raksha Bandhan reward of Prime Minister Narendra Modi of lowering the worth of LPG cylinders has introduced cheer to lakhs of home customers, distributors of the cooking gasoline of three main oil advertising corporations are looking at an enormous loss.
With no readability from the Ministry of Petroleum and Natural Gas or any communication from the oil advertising corporations (OMCs) – Indian Oil, Bharat Petroleum and Hindustan Petroleum – the distributors are at loss on methods to offset the worth of their outdated inventory.
“We are still figuring out what to do. Cooking gas distributors from across the state (around 1,300) are asking me if there is any communication from the OMCs how to recoup the price of the cylinders stocked prior to cost revision. I have no answer for them as I am not sure what is going to happen,” mentioned president of All Odisha LPG Distributors Association Lopamudra Baxipatra.
She mentioned every distributor could have a minimal inventory of 300 to 500 cylinders whereas it’s greater than 1,000 cylinders for larger distributors. A hefty value discount of `200 per cyclinder (14.2 kg), if not compensated, will put them at a disadvantageous place financially.
As per a conservative estimate, a distributor who lifts 10-15 load (every load comprising 300 to 500 cylinders) every day could have a inventory of 500 cylinders whereas these lifting 50 to 60 masses a day could have a minimal inventory of over 2,000 cylinders. Imagine the sort of loss they are going to maintain if not compensated by the Centre, Baxipatra, additionally a outstanding BJD chief mentioned.
Echoing related concern, vp of All India HP Dealers’ Association SB Mohapatra, a prime participant in cooking gasoline distribution within the state capital, mentioned the Petroleum ministry ought to have modified the worth of cooking gasoline a day earlier or imposed restriction on lifting of inventory earlier than the union cabinet took the choice on value discount.
“We welcome the decision of the government as it will provide much-needed relief to consumers under the prevailing inflationary situation. But the government could have taken the concerns of the LPG distributors into consideration before or after the cabinet decision,” Mohapatra mentioned. “This is the highest ever cut in LPG price after 2020 when the price of a cylinder was reduced by `50. The Centre compensated the loss partially after the all-India association of LPG distributors staged an agitation before the government. We expect the government will be sympathetic to our problem,” he added.
BHUBANESWAR: Even because the Raksha Bandhan reward of Prime Minister Narendra Modi of lowering the worth of LPG cylinders has introduced cheer to lakhs of home customers, distributors of the cooking gasoline of three main oil advertising corporations are looking at an enormous loss.
With no readability from the Ministry of Petroleum and Natural Gas or any communication from the oil advertising corporations (OMCs) – Indian Oil, Bharat Petroleum and Hindustan Petroleum – the distributors are at loss on methods to offset the worth of their outdated inventory.
“We are still figuring out what to do. Cooking gas distributors from across the state (around 1,300) are asking me if there is any communication from the OMCs how to recoup the price of the cylinders stocked prior to cost revision. I have no answer for them as I am not sure what is going to happen,” mentioned president of All Odisha LPG Distributors Association Lopamudra Baxipatra.googletag.cmd.push(operate() googletag.show(‘div-gpt-ad-8052921-2’); );
She mentioned every distributor could have a minimal inventory of 300 to 500 cylinders whereas it’s greater than 1,000 cylinders for larger distributors. A hefty value discount of `200 per cyclinder (14.2 kg), if not compensated, will put them at a disadvantageous place financially.
As per a conservative estimate, a distributor who lifts 10-15 load (every load comprising 300 to 500 cylinders) every day could have a inventory of 500 cylinders whereas these lifting 50 to 60 masses a day could have a minimal inventory of over 2,000 cylinders. Imagine the sort of loss they are going to maintain if not compensated by the Centre, Baxipatra, additionally a outstanding BJD chief mentioned.
Echoing related concern, vp of All India HP Dealers’ Association SB Mohapatra, a prime participant in cooking gasoline distribution within the state capital, mentioned the Petroleum ministry ought to have modified the worth of cooking gasoline a day earlier or imposed restriction on lifting of inventory earlier than the union cabinet took the choice on value discount.
“We welcome the decision of the government as it will provide much-needed relief to consumers under the prevailing inflationary situation. But the government could have taken the concerns of the LPG distributors into consideration before or after the cabinet decision,” Mohapatra mentioned. “This is the highest ever cut in LPG price after 2020 when the price of a cylinder was reduced by `50. The Centre compensated the loss partially after the all-India association of LPG distributors staged an agitation before the government. We expect the government will be sympathetic to our problem,” he added.
