The Government has approved Free Trade LPG(FTL) Scheme for selling 5 kg LPG cylinders through Company Owned Retail Outlets (COCO) PSU Oil Marketing Companies(OMCs).
The Minister of Petroleum and Natural Gas Dr. M. Veerappa Moily approved a proposal to launch the scheme on pilot basis in Delhi, Mumbai, Chennai, Kolkata and Bangalore for selling 5 kg LPG cylinders with/without Domestic Pressure Regulator (DPR) at COCO retail outlets. The OMCs have COCO retail outlets which are accessible to all and are open for longer hours.
This decision has been 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 thus 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 LPG sold under the scheme will be called Free Trade LPG (FTL). 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 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. The COCO RO would keep a Demo Kit of an ideal Kitchen and explain the cylinder connection/disconnection procedure at the time of first sale. However, it would be customer’s responsibility to use the equipment as per the safety instructions. The company would not be liable for any losses/damages arising in case of accident during transit or usage. OMCs will offer, on request, an insurance policy which will provide cover for loss of life and property in the event of an LPG accident occurring at the customer’s premises. In transit insurance cover will not be available. On the request of the customer, the COCO RO through the supplying distributor shall also provide the installation of equipment at customer’s premises and will also provide after sales services on chargeable basis.
The scheme is a step towards beginning of free trade of LPG and would make LPG available for wider use especially for those citizens who are always on the move due to their professional needs. All guidelines related to Safety for storage, handling and dispensing of LPG at COCO Retail Outlets, as stipulated by OISD and PESO shall be complied with strictly by OMCs while implementing the scheme.