Friday, 16 November 2012

You may soon get to switch your Gas Agency

The government plans to allow consumers to switch cooking gas agencies like cell phone users change their service provider, and make sure that households are not refused cylinders on procedural grounds, as it seeks to address a barrage of consumer complaints on the politically sensitive issue.
State-run oil firms and the ministry are urgently discussing the new proposal after a public outcry against alleged malpractice and instances of dealers refusing to deliver cylinders even at market rates, government and industry officials said. Political leaders, including senior members of the ruling Congress party, have raised concerns that consumer anger on the issue can have serious implications on crucial elections.
The issue has been simmering since September when the government capped the supply of subsidised LPG cylinders to six per household per year to stop large-scale diversion of cheap domestic fuel for commercial use and to cut subsidies. But in the two months since the decision, customers have complained that their kitchens became dysfunctional as dealers refused to supply even non-subsidised cylinders.
Consumers were asked to submit KYC (know your customer) documents, or proof of identity and residence, by November 15 to be eligible for subsidised LPG. This has magnified fears of harassment and malpractices by gas agencies, but the oil ministry has intervened to help consumers and give them the option to switch their dealer. "With this objective, marketing firms have already introduced ratings of distributors and over 1 lakh consumers have rated their dealers. This feature will provide wider choice to consumers and force distributors to provide better service," a senior oil ministry official said. Currently, consumers are usually tied to one particular dealer unless they change residences.
Inter-company transfer of gas connections is nearly impossible.
The oil ministry also wants to make sure that supply of non-subsidised cooking gas is not stopped.

Source: The Economic Times

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