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Monday, Aug 16, 2004

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LPG racket alleged in Kerala

Our Bureau

THIRUVANANTHAPURAM: Residents' associations and consumer and social groups have demanded stern steps to curb what they described as a thriving racket wherein subsidised LPG cylinders meant for domestic use are diverted to commercial establishments with the connivance of a section of officials of the public sector oil companies.

The demand was made at a joint press conference here by the office-bearers of the Federation of Residents Associations Thiruvananthapuram (FRAT), the Jilla Upabhokthru Samithi, All Kerala Gulf Returnees' Organisation, Social Justice, NRI Information and Guidance Centre and the Gulf Malayali Kudumba Vedi.

They pointed out that the Centre was paying a subsidy of Rs112.80 for each 14.2 kg LPG cylinder meant for domestic use. The domestic cylinder cost Rs 282 while the commercial cylinder, which weighs 19 kg, costs Rs 645. The commercial consumer makes a profit of Rs 372 when he opts for the domestic cylinder, while the distributor gains somewhere between Rs 100 and Rs 150 in profit.

More Stories on : Petroleum | Economic Offences | Kerala

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