Oil Secy to take up OMCs' issues weekly
New Delhi   11-Dec-2012

The oil secretary will directly monitor marketing operations of state firms every week to ensure smooth transition to the proposed cash transfer of fuel subsidies and assess cooking gas supply to customers who are complaining harassment by dealers. Many customers have complained that cooking gas dealers are not providing them cylinders they are entitled to, citing the 'know your customers (KYC)' requirement. Oil secretary will meet top executives of IndianOil, BPCL and HPCL every Tuesday to iron out marketing issues, including mandatory blending of 5% ethanol with petrol, officials in the ministry and industry said.

Customers continue to complaint about disruption in supply of cooking gas even though the ministry has relaxed the KYC requirements and instructed dealers to deliver LPG at market rates to customers who have not submitted required documents, officials said.

In September, the government had raised diesel prices sharply and said each household would get only six subsidised cylinders a year to control the uncomfortably high oil subsidy bill, and cut losses of state firms. After receiving six subsidised cylinders, consumers would have to pay market prices, which are significantly higher.

The secretary will also monitor implementation of direct transfer cash subsidy, which is expected to be rolled out by next financial year, officials said. The oil ministry plans to transfer cooking gas subsidy amount directly to bank accounts of consumers even without aadhaar numbers starting from Andaman & Nicobar. It is also preparing a draft cabinet note to provide cash subsidy on kerosene across the country by April next year, officials said.

The government eventually wants to sell all LPG cylinders and kerosene at market rates across the country by 2013-14 to discourage diversion and provide cash subsidy to the poor. A committee, led by Prime Minister Manmohan Singh is keenly monitoring the development, the official added.

The ministry is also considering raising cap of subsidised cooking gas cylinders. "A decision is expected soon and the issue could be discussed at the meeting with the oil secretary," the official said.

Officials said the Direct Transfer of Cash Subsidies on Kerosene 2012 (DTCK-12) has already been launched in 11 states, which have been awarded Rs 100 crore each for voluntarily accepting it. "A similar scheme is conceived for the entire country, which will be tabled in the cabinet soon. The only difference is that DTCK would be mandatory and states would not get Rs 100 crore as incentive," one official said.

According to the oil ministry, the proposed scheme would save Rs 7,500 crore in kerosene and Rs 7,200 crore on cooking gas annually. Government and state oil companies pay 36,365 crore subsidy on LPG and Rs 29,386 crore on kerosene annually.