The Hindu Business Line : BPCL wary of stepping into auto LPG filling stations

BHARAT Petroleum Corporation Ltd (BPCL) is aware of the potential of the LPG application in the automotive sector. But, the public sector oil company is in a dilemma in setting up auto LPG filling stations considering the unchecked diversion of domestic cooking gas in automobile use.

"As it is there is a great intensity in diversion of the subsidised LPG for being used as fuel for automobiles and we can't police the LPG useage. Only the State Government having powers to check this abuse under the Essential Commodities Act has the apparatus," said Mr Radhakrishnan, Director (Marketing) BPCL.

He said that while the auto LPG filling stations in Bangalore fared well due to the effective implementation of the certification of the autorickshaws for fitting LPG cyclinders, this is not the case with the LPG filling station in Chennai which lacked patronage.

Setting up the LPG filling station involves considerable investment with each station costing between Rs 50 lakh and Rs 70 lakh. Nevertheless, BPCL is planning to set up new LPG filling stations in Tamil Nadu — two in Coimbatore and one in Erode — shortly.

The BPCL official said his corporation is looking at gas-based projects as the promising investment. The corporation was going in a big way both for piped natural gas and the CNG projects. The company, which is putting up the LNG facilities in Kochi, is also working with the Gujarat State Petroleum Corporation for setting up the CNG site at Gandhinagar. "With the emission control norms being pursued vigorously, gas as a fuel will be a key area which will impact on petrol/diesel as well as the industrial fuels like naptha or furnace oil marketing. So we will have to be ready with investment plans," Mr Radhakrishnan said.

On the proposed merger of its subsidiary Kochi Refineries Ltd with BPCL, Mr Radhakrishnan said the merger proposal, intended to achieve greater synergy for the corporation's operations was awaiting the Government's approval and he hoped that the Government clearance would come soon.

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