Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
26-April-2012 16:53 IST
Several Measures Undertaken to Check Blackmarketing of LPG: R P N Singh
Nearly 9 lakh LPG Connections of PNG Custmers Blocked to stop Diversion

            The Minister of State for Petroleum and Natural Gas Shri R.P.N. Singh informed the Lok Sabha in written reply today that constant efforts are being made for blocking of the LPG connections of PNG(Piped Natural Gas)   consumers by way of regular monitoring and issue of instructions to the Oil Marketing Companies OMCs and City Gas Distribution (CGD) companies. “As on 01.04.2012, OMCs have blocked 8,89,267 LPG connections of PNG  consumers, in an effort to stop diversion of subsidized domestic LPG”, he added. PNG connections are provided to households in cities having CGD projects to supply natural gas as cooking fuel.

 OMCs have also introduced different colours for domestic and non-domestic LPG cylinders for controlling the diversion of domestic LPG for unauthorized use, the Minister said.

The Minister further said that to check black-marketing of LPG, OMCs carry out regular surprise inspections at distributors’ premised, conduct refill audits, surprise checks at customers’ premises including en-route checking of delivery vehicles etc., and action, where-ever necessary, is taken in accordance with the provisions of the MDG (Marketing Discipline Guidelines).  In addition, surprise checks are carried out along with the help of local Government officials which includes restaurants and small eateries to ensure that the subsidized domestic LPG is not misused.

Shri Singh also informed that the Government has enacted “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000” and formulated “Marketing Discipline Guidelines, 2001” which provides for penal action against LPG distributors indulging in diversion/black marketing of LPG.

MDG provide, inter-alia for following action against the distributor:-

·          Fine of ` 20,000 plus the price of LPG diverted at commercial rates for 1st offence.

·          Fine of ` 50,000 plus the price of LPG diverted at commercial rates for 2nd offence.

  • Termination of the distributorship for 3rd offence. 


He also emphasised   that the in addition to the action taken by the OMCs, State Governments are empowered under the LPG (Regulation of Supply & Distribution) Order, 2000 promulgated under the Essential Commodities Act, 1955 to take action against black marketing/diversion of domestic LPG.

The Minister stressed that the government has also issued advertisements cautioning the public that use of domestic LPG for non-domestic purposes is illegal and against national interest. Through these advertisements, cooperation of the general public has also been sought to report any irregularity/malpractice to the OMCs.