Guwahati, July 08, 2023: In an effort to cater to the needs of Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries in Assam who find it challenging to afford the standard 14.2 kg LPG cylinder, the Indian Oil Corporation Limited (IOCL) has introduced a new offering. Instead of the larger cylinder, IOCL is providing two 5 kg LPG cylinders as a refill package.
However, the implementation of this initiative has faced some obstacles, resulting in slower progress than anticipated. Over the course of the past year, Indian Oil, a prominent energy PSU in India, has managed to distribute only 1 lakh “mini” cylinders among the 34 lakh beneficiaries who rely on liquefied petroleum gas. Assam, with approximately 56 lakh families below the poverty line, has seen 44.14 lakh families become beneficiaries of PMUY, entailing a free single-cylinder LPG connection.
According to officials from Indian Oil’s Assam Oil Division (AOD), about 25% of beneficiaries have not applied for refills due to various reasons such as affordability concerns and the availability of firewood for cooking. This leaves approximately 34 lakh beneficiaries interested in continuing to use LPG, provided it is more affordable.
G. Ramesh, the executive director and Assam head of IndianOil AOD, stated, “We have been offering BPL families the option of 10 kg of LPG in two 5 kg metallic cylinders as a cheaper alternative. We hope that these smaller cylinders will gain popularity among those who find the 14.2 kg cylinder beyond their means.”
However, Indian Oil’s field officials have identified some practical challenges in promoting the 5 kg cylinders. An official pointed out that the cost per kg of LPG is nearly the same for a 5 kg cylinder, which is currently priced at ₹422 per cylinder. Nevertheless, BPL consumers hesitate to settle for 10 kg (two 5 kg cylinders) when they initially used the 14.2 kg cylinder. The standard 14.2 kg cylinder is priced at ₹1,152.
In addition to this initiative, IndianOil, which holds an 87% LPG market share in the northeast region of India (excluding Sikkim), has been actively marketing a 10 kg translucent, fiberglass cylinder with a blow-molded plastic outer jacket for urban consumers. This cylinder is not only visually appealing and lightweight but also allows users to monitor the gas level and order a refill accordingly. Currently, the fiberglass cylinder is priced at ₹821.
The company’s efforts to cater to specific consumer segments also extend to a 5 kg commercial version called Chhotu, priced at ₹567, which has gained popularity among urban migrants such as students, individuals in transferable jobs, and truckers. Additionally, IndianOil plans to introduce Munna, a 2 kg cylinder priced at ₹247, targeting individuals who require a portable and convenient option. Distribution of Munna is expected to commence soon in the northeast region.
For commercial consumers, IndianOil has introduced XtraTeJ in 19 kg and 47.5 kg variants. This product generates a high-temperature flame for faster cooking while saving a minimum of 5% of fuel.
Source: The Hindu
