LPG distributors to go on token strike on 1 October demanding single rate structure

LPG distributors around the country will go on a token strike on 1 October to protest the cap on subsidized cylinders.

The distributors are stressing the need for a single price system as well as a foolproof distribution plan. The porterage now is Re 1 per kilogramme.

"When you're selling one cylinder for Rs 400 and another for Rs 800, of course you are encouraging black marketing. People will sell the subsidized cylinder in black for Rs 800," said Pawan Soni, general secretary of the National Federation of LPG Distributors of India (NFDI).

"When you create further variations in pricing, more black marketing will happen," he added.

The government complains about black marketing, but the government itself has created the problem with no single price and no adequate commission, he added.

Earlier there were two categories—domestic and commercial. Now the government has created three categories—subsidized (six cylinders), non-subsidized, commercial and exempt (schools, hospitals, temples, etc., which will continue to receive cylinders at subsidized rate beyond the six cylinders).

"We are forced to give cylinders at a subsidized rate to influential people, a practice especially prevalent in rural areas," Mr Soni claimed.

"The distributors are caught in a mess. We are made accountable for everything," the NFDI said.

The distributors have threatened to go on an indefinite strike should their demands not be met.

"Our only demand is keep it (the price) at one level and then the government gives cash subsidy directly."