Now pay Rs 50,000, if caught diverting LPG cylinders

As per the new guidelines for market discipline, a penalty of up to Rs 50,000 may be imposed for each cylinder diverted.

Update: 2017-10-20 21:06 GMT
Bharat Petroleum Corporation or BPCL produces Bharatgas LPG cylinders. (Photo: PTI)

Hyderabad: Oil marketing companies (OMCs) have tightened their norms in order to check the illegal diversion of domestic LPG cylinders to the black market. As per the new guidelines for market discipline, a penalty of up to Rs 50,000 may be imposed for each cylinder diverted.

Though thousands of domestic LPG cylinders are illegally diverted to the black market every year, there are no stringent norms in place for the punishment of dealers involved such activities.

On an average, vigilance teams of the civil supplies department seize 10,000 domestic cylinders that have been diverted to the black market across the state every month. Though cases are booked against the dealers responsible for such diversions, there is little to no follow-up action. The wrongdoers are let off with warnings, with no imposition of penalties or cancellation of the dealership.

Meanwhile, the diversion of domestic cylinders is becoming increasingly rampant, especially since the Centre’s imposition of a 12-cylinder cap on the availability of subsidised cylinders to each customer. OMCs have decided to take action to control this menace.  OMC officials say that the new market discipline guidelines have been sent to all LPG distributors.

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