Tamil Nadu - Chennai   

LPG cylinder deposit hiked

CHENNAI: The one-time security deposit for new domestic liquefied petroleum gas (LPG) connections, supplied by national oil marketing companies such as Indian Oil Corporation, is being increased by Rs.400 a cylinder from Monday.

According to the announcement, received through text message by a few IOC distributors here on Friday, the deposit for a single cylinder connection will go up from Rs. 850 to Rs.1,250. For double bottle connections (two cylinders), it will be Rs.2,500. Besides the deposit towards the 14.2-kg cylinders, the oil companies have decided to increase the security deposit for the pressure regulator from Rs.100 to Rs.150. Confirming the decision to increase the deposit, a senior official of Bharat Petroleum Corporation Limited (BPCL) said it was an industry decision and would apply to the three national oil marketing companies.

The decision , sources in the industry said, could also be an indicator of the companies resuming issue of new connections which they had stopped recently citing cash crunch.

One of the oil companies is understood to have decided a few days ago to resume issuing new connections to the extent of equipment (cylinders) available.

One of the reasons cited by the companies for the freeze on the new connections was the increase in steel prices and the additional spend required to be made while augmenting the inventory. Such additional expenditure was not possible in the face of the financial constraints due to the under-recovery.

Sources among the distributors said the increase would not be applicable to the existing consumers. Besides those seeking new connections, the new rates would be applicable to single-cylinder customers opting for double-bottle connections and those coming for name transfers.

On the name transfers, the sources said the change of name to the legal heir, when accompanied by the legal heir certificate, would not require payment of the deposit afresh.

Only those not having the certificate and others seeking third-party transfer would require to pay the new rates.

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