LPG cylinder bookings spurt on price hike recommendations
06 Feb 2010
LPG gas cylinder bookings have spurted over the last few days on expectations of price rise following the Kirit S Parikh Committee's recommendations to the government for a hike in petroleum products including LPG. The demand spurt has, in turn, led to hoarding of LPG cylinders by unscrupulous traders in a bid to create and artificial crisis.
According to oil company executives the number of bookings has increased by more than 50 per cent since the committee's report hit the headlines.
The committee has recommended a Rs100 hike in the price of LPG cylinders and decontrol of petroleum products prices. An IOC official told The Times of India that there was a shortage of LPG cylinders in the Kolkata last month, primarily on account of logistical problems.
He added that the company could not supply LPG cylinders to distributors owing to several holidays in the latter half of January. He added that supply from its bottling plants was hindered.
IOC now has seven bottling plants in West Bengal.
According to the official, IOC normally sent 240 truckloads of LPG cylinders to Kolkata every day with each truck carrying 306 cylinders. He added that the company had increased the number of trucks to 270 from last week to make up the shortage. He added that the situation had since normalised but there could be a problem due to panic booking by customers.
