Liquefied Petroleum Gas (LPG)

LPG occupies a special position in India. The reasons are not far to seek. From its small beginnings in 1950s, LPG now occupies a position of absolute necessity as a cooking fuel in India. The growth of LPG customers has been phenomenal, from 3.16 million in 1980 to 19.80 million in 1993, representing an annual growth rate of over 48 percent. A demand supply gap of nearly 1 million tons in 1996-97 for LPG still needs to be covered. It is against this background that the government of India announced the Parallel Marketing Service (PMS) for LPG. The main objectives of the scheme are:

• augment availability of LPG through additional imports
• cater to unsatisfied demand
• develop additional infrastructure
• market through a parallel network at market determined rates
• private entrepreneurs will be allowed to import LPG and set up own handling and marketing facilities.