Ration shops may soon start selling small LPG cylinders, financial products

Move meant to increase financial viability of fair-price shops

Consumers may soon be able to purchase small LPG cylinders and financial products alongside grains from their neighbourhood ration shops.
 
This is because the Centre is working on a plan to allow sale of such items to increase the financial viability of over 5.3 lakh fair-price shops across the country. Small LPG cylinders are typically those which are less than 14.2 kilograms. The most common small LPG cylinder is the one which weighs 5 kilograms.
 
The decision to devise a plan to allow ration shops across the country to sell gas cylinders and financial products was discussed at a virtual meeting that food secretary Sudhanshu Pandey held with representatives of state governments and other line ministries. The ministries include that of electronics and IT; finance; and petroleum and natural gas.

 

Already, the Centre allows Common Service Centres (CSC) to retail small LPG cylinders of less than 14.2 kilograms.
 
This has been made possible after the Petroleum and Explosives Safety Organisation (PESO), under the department for promotion of industry and internal trade (DPIIT), allowed LPG storage of up to 100 kilograms a few years ago without the need for any approvals.
 
This was done to promote the sale of small (5 kg) LPG cylinders at multiple retail outlets (100 kilograms meant 20 cylinders of 5 kg could be stored at any place without any permission).
 
This enabled CSCs to store and retail small cylinders. And, in the same format now, fair-price shops have also been granted permission to sell and retail small cylinders.

 
Sources in the petroleum ministry said ration shop owners will have to source the cylinders from registered dealers only. They can act as delivery and collection points for filled and empty cylinders for which they can charge a fee.
 
The criteria as to which ration shop should be allowed to store and sell small cylinders will be determined by the department of food, they added.
 
Small cylinders don’t have any subsidy component in them and are sold at market value. Data shows that small cylinders, which are less than 14.2 kilograms, form a minuscule proportion of total cylinder sales in the country but the government has been promoting their usage.

 
As ration shops fall under the jurisdiction of state governments, such a programme can only become viable with their active support.
 
Few years ago, news reports said that Goa had planned to sell small LPG cylinders through ration shops.
 
Meanwhile, after the meeting, the food and consumer affairs ministry said in a statement that representatives from oil marketing companies (OMCs) appreciated the proposal for retail selling of small LPG cylinders through fair-price shops. It said OMCs have assured necessary support in coordination with interested states or union territories.