With the LPG prices skyrocketing, the Centre is planning the sale of small LPG cylinders through ration shops. In a bid to enhance the financial viability of fair price shops (FPS), the government is planning to allow them to offer financial services in consultation with states.
The Centre on Wednesday said it is planning to allow the retail sale of small LPG cylinders and even offer financial services through fair price shops as part of its measures to enhance the financial viability of these outlets. Notably, these proposals were tabled in a virtual meeting chaired by Food Secretary Sudhanshu Pandey with state governments to enhance the financial viability of government-run ration shops.
Officials from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) as well as CSC e-Governance Services India Limited (CSC) were also present.
Smaller cylinders are expected to increase the affordability of cooking gas for the less privileged. When domestic LPG prices were regulated by budgetary subsidies, the government was incurring losses to keep the effective price of a cylinder closer to Rs 500. However, currently, domestic LPG cylinders (14.2 kg) are sold at market prices, “but the government continues to subsidize freight for consumers in some parts of the country,” a source in a PSU oil firm said.
The food secretary asked states to take up these initiatives and tailor them to suit their requirements. He advised CSC to conduct separate workshops/webinars with different groups of states and union territories to provide sensitization on potential benefits, capacity building of FPS and assist them in the implementation of these initiatives.
Further, the secretary advised the states to conduct continuous awareness and outreach campaigns simultaneously to sensitize FPS dealers on the benefits of these initiatives.
In a series of tweets, food and consumer affairs minister Piyush Goyal said, “Plan for retail selling of LPG cylinders through FPS on the anvil. States/UTs to sensitize the FPS dealers on the same.”
Goyal said his ministry calls for taking proactive measures to enhance the financial viability of FPS.
There are around 5.26 lakh fair price shops in the country through which subsidized foodgrains under the National Food Security Act are being distributed to the poor beneficiaries.
