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Ministry of Petroleum and Natural Gas

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Ideas to reduce diversion in LPG & Kerosene

Start Date :

Jan 01, 2015

Last Date :

Jul 01, 2016

00:00 AM IST (GMT +5.30 Hrs)

Submission Closed

A huge amount of Govt. money is spent on subsidy of petroleum products. The Govt. had to spend Rs. 1,39,869 crore on account of subsidy on petroleum products in the year 2013-14. ...

A huge amount of Govt. money is spent on subsidy of petroleum products. The Govt. had to spend Rs. 1,39,869 crore on account of subsidy on petroleum products in the year 2013-14. As, the indigenous availability of crude Oil and LPG is limited, these are imported in huge quantities to fulfill the demand of the country. As Govt. provides domestic LPG and PDS Kerosene on subsidised price, this results in huge subsidy burden on Govt. Due to presence of dual pricing(subsidized and non-subsidized) in LPG and SKO, there is a diversion of subsidized LPG and Kerosene into commercial usage. Although Govt. has taken several initiatives to reduce this diversion of subsidized LPG and PDS Kerosene, public participation is solicited to suggest ways for reducing diversion in LPG and PDS Kerosene.

You are invited to suggest ideas to reduce diversion and the subsidy burden on account of LPG and Kerosene.

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Showing 2334 Submission(s)

surendra singh 11 years 9 months ago

1---gov need to give subsidy for poor people only.rich people dont need any subsidy. 2---govt need to give them a biometric card for subsidy.for biometric card they must have rationcard,income certificate from tehsil,police verification and ration shop(kota) verification. 3---subsidy cylinder should be on rashion shop(kota).whereas other without subsidy cylinder shoul be on petrol pump.subsidy and without subsidy cylinders colour should b e separate.like red and blue.

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Arun Kaliappan 11 years 9 months ago

Option 3: Increase prices progressively, reduce subsidies progressively, reduce allocation progressively by targeting and introducing smart cards (under UID) and taking out the excess allocation, plus mop up incremental income of upstream sector Submitted for your kind perusal plz. Arun Kaliappan

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Arun Kaliappan 11 years 9 months ago

Option 2: Increase prices progressively, reduce subsidies progressively, issuing oil bonds, mop up incremental income of upstream sector-normal sharing formula that government has been following or proposing to follow contd..

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Arun Kaliappan 11 years 9 months ago

would have on their he Ways Out in case of Price Spiral Option 1: Keep prices unaltered, keep budgetary subsidies intact, issue oil bonds, follow the usual schemes and monitoring procedure - extremely costly option which India can’t afford both from efficiency and fiscal perspective contd..

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Arun Kaliappan 11 years 9 months ago

But, given the fact that it may not be very easy for the lowest rung to shake off their dependence on biomass immediately , smart cards also needs to be complemented with mass supply of efficient and cheap biomass based cook stoves and increased use of biogas at least in the short run not only to reduce the problem of emissions and black carbon but mainly to combat the serious repercussions that continued use of biomass by the lower rung of rural poor (especially women and children) would have

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Arun Kaliappan 11 years 9 months ago

Positioning System (GPS). OMCs have also created infrastructure at wholesaler locations by providing Under ground tanks, dispensing units, specially painted blue barrels and barred sheds. contd..

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Arun Kaliappan 11 years 9 months ago

• Revision of market discipline guidelines with penal action against erring dealers. • Jan Kerosene Pariyojana (JKP) in select blocks of some states. Delivery under JKP is made at wholesaler points by OMCs through dedicated tankers fixed with Global contd..

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shailesh birajdar 11 years 9 months ago

Diversion of subsidiesed lpg takes place mainly at two places 1- dealer 2- customer requireing less than 12 cylinders per year to avoid this 1. Eliminate influence of dealer & improve service quality by direct feedback to company by customer. 2. Use barcode stickers to keep data of every cylinder dispatched out from company any receive from dealer only those which are given to him. Apply this rule to customer also. 3. Apply time limit on booking suppose 25 days. Cylinder before this limit Should be made unsubsidised. If at the end of year unsubsidised cylinder remains then you may consider this one. this will ensure no of cylinders to be supplied for perticuler delear in month. So that you can fix it & supply cylinder quikly. Fix the no of days for dealer to supply for customer after date of booking.

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Arun Kaliappan 11 years 9 months ago

Automation of retail outlets • Third party inspection and certification of retail outlets • Direction to oil and marketing companies (OMCs) for monitoring of movement of tank trucks through global Positioning system • Introducing marker in kerosene to prevent adulteration contd..

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Arun Kaliappan 11 years 9 months ago

Adulteration: The biggest use of PDS kerosene has been for the adulteration of diesel resulting in more pollution and GHG emission. It has been estimated that nearly 35% or more of PDS kerosene is diverted for unauthorized purposes including adulteration. This would simply frustrate the benefit that could be gained from substantial investment in producing Euro III and Euro IV diesel would be largely negated. contd..

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