Reliance Industries enters LPG sales venture
Posted on: 25/Oct/2016 9:49:49 AM
Reliance Industries is the largest Oil Refinery Unit. Now, it has entered the domain of LPG cooking gas selling. In the first phase, it has started selling 4 kg LPG gas cylinders.
This information was released after the investors meeting at the end of the 2nd Quarter results.
The first phase of sales is on a trial basis introduced in 4 districts. During the period from April till September, the consumption of LPG cooking gas has gone up by 10.2 percent.
The private sector companies, Reliance and Essar, have entered this trade to capture a sizeable percentage of the market demand. In the 6 month period, 1.08 tons have been used. Hals of this has been imported.
Currently, only Indian Oil, Bharath Petroleum, and Hindustan Petroleum are in the retail business of LPG. LPG cooking gas cylinders are sale in capacities of 5 kg, 14.2 kg, and 19 kg.12 cylinders (of 14.2 kg) is given to each house per year under subsidized prices. If additional cylinders are required, they can be bought from the market. For commercial use, 19 kg LPG cooking gas cylinders are sold in the market.
The private sector can sell LPG at the market rates. However, as there is a condition that there will be no subsidy for persons with more than Rs. 10 Lakhs annual income, this has opened the market for the private sector.
So far, Reliance as not declared its price rates.The central government has granted permission for Reliance to sell 1.2 Lakh tons of LPG last year.
