Union Government approved a Free Trade LPG Scheme

The Ministry of Petroleum and Natural Gas on 24 July 2013 approved a Free Trade LPG (FTL) Scheme for selling five Kg LPG cylinders through Company Owned Retail Outlets (COCO) of Oil Marketing Companies (OMCs). Under the scheme, COCO Retail Outlets will sell 5 kg LPG cylinders at Non-domestic (commercial) prices. The LPG sold under the scheme will be called as Free Trade LPG (FTL). A five-kg cylinder will cost between 362 rupees and 375 rupees.

The scheme will be launched on a pilot basis in Delhi, Mumbai, Chennai, Kolkata and Bangalore where these cylinders will be sold with or without domestic pressure regulator (DPR).

The decision was taken in view of the fact that over the years, a new category of consumers have emerged especially in big cities who are mobile and do not want a permanent LPG connection but still require LPG for their needs. Such customers need flexibility for getting the LPG cylinders as per their convenience and their needs can also be fulfilled by smaller quantities of LPG.

The prospective customer at the time of first sale would only be required to give a copy of Voter I-Card, Driving license, Pan Card, Aadhaar Card, Bank Pass book, Employees ID, Passport, Student ID or any other such document that can act as a proof of identity. At the time of first sale cost of equipment (DPR plus cylinder), cost of product at prevailing Non- domestic 5kg cylinders price and administrative charges will be payable. At the time of subsequent refill only the cost of product will be payable.

The government scheme would make LPG available for those citizens who are always on the move because of their professional needs.