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LPG distributors clarify

Staff Reporter

KOZHIKODE: The Kerala Circle, All India LPG Distributors Federation clarified that the Minister concerned has not issued any order authorising collection of transportation charges on LPG in the area of operation.

His order is to maintain status quo pending final decision on the matter.

Explaining the details of rules in force general secretary of the federation M. Sangeet Kumar said that LPG distribution in the State is carried out by LPG Distributors appointed by the three public sector oil companies such as Indian Oil Corporation Ltd., Bharat Petroleum Ltd. and Hindustan Petroleum Ltd.

As per agreement signed between LPG Distributors and Oil Companies, distributors are bound to effect home delivery of LPG cylinders without additional charge to the specified area of distribution only.

‘Collection allowed’

Beyond that particular area/market agencies are allowed to collect transportation charge as fixed by the District Collectors in line with Rule 9 of the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order 2000 made in exercise of the powers conferred by Section 3 of Essential Commodities Act 1955.

The transportation charges are collected as per rates fixed by the respective District Collectors and same is reflected in bills issued by agencies.

This was the practice all over the country.

LPG distributors in Kozhikode District were also allowed transportation charges and have been collecting the same from 1996, revised in 1997 and 2000.

The present District Collector has revised the same as per an order dated October 11, 2006 and again on June 26, 2008.

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