NEW DELHI: The government has asked Reliance Industries to stop retailing locally produced liquefied petroleum gas (LPG), casting a shadow on the company’s vast network that supplies cooking gas to 1 million customers, mostly in rural areas, and 134 auto LPG outlets. Officials said the sale violated an oil ministry directive, called the LPG control order, that mandates that all cooking gas produced in India must be supplied to state-run oil retailing companies, which are forced to import a part of the requirement.
“We have issued an order last week, reiterating the government’s position that sale of indigenously produced LPG is permitted only to IOC, BPCL and HPCL. Parallel marketers such as Reliance can import LPG and sell it through its retail outlet,” a senior oil ministry official said. Earlier, the oil ministry had accused RIL of selling LPG produced in its Jamnagar, Hazira and Patalganga plants to retail customers in violation of it order, as reported by ET on Dec 11. Read more