High refill, deposit costs keep consumers in Karnataka away from 10 kg LPG option

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Distributors and gas agencies said many consumers are instead opting for induction stoves, especially those benefiting from the Gruha Jyothi scheme. | Photo Credit: File photo

Since the West Asia war began, State-owned oil companies have been encouraging consumers to switch to 10 kg LPG cylinders.

While Hindustan Petroleum Corporation Limited (HPCL) launched the 10 kg LPG HP Navya, Indian Oil Corporation Limited (IOCL) introduced Indane Xtralite, and Bharat Petroleum Corporation Limited (BPCL) rolled out Bharatgas Lite ZIP, all these variants are being promoted by gas agencies to consumers seeking new 14.2 kg LPG connections.

However, gas agencies and distributors say the response has been poor because of the stark difference in refill prices between the 14.2 kg and 10 kg cylinders, as well as the higher deposit amount required for the latter.

Kumar L.G., Secretary, All-India Distributors LPG Federation (Karnataka Circle), said, “Various State-owned oil companies are promoting 10 kg cylinders because we have not been able to provide new 14.2 kg LPG connections since the West Asia war began. Many applications are pending across gas agencies in Karnataka. Instead of waiting for a 14.2 kg LPG connection, consumers can buy Free Trade LPG (FTL) cylinders directly over the counter.”

Mr. Kumar added, “However, the response to the 10 kg option has been very poor because of pricing. The refill price for a 14.2 kg cylinder is ₹945, whereas that for a 10 kg cylinder ranges between ₹1,700 and ₹1,800, depending on the distributor and agency. The deposit amount is also higher at ₹3,000, compared with ₹2,200 for a 14.2 kg cylinder. It is obvious that consumers will think twice before spending ₹180 per kg instead of ₹67 per kg.”

The difference is because the 10 kg cylinders fall under the Free Trade LPG (FTL) category, like the 5 kg cylinders. They are priced at market rates, with no government subsidy, and are also costlier because of the manufacturing technology involved.

Mr. Kumar said oil marketing companies were earlier incurring a loss of ₹650 on each LPG cylinder because of import and other logistics costs. The loss has now come down to ₹188 per cylinder.

According to the latest data shared by the Department of Food, Civil Supplies and Consumer Affairs, more than 36,000 applications for new LPG connections are pending across Karnataka.

Harish, another LPG distributor, explained that unlike the 14.2 kg option, where consumers face certain restrictions, there is no limit on the number of 10 kg cylinders that can be purchased. Consumers can buy additional cylinders based on their requirement. “Once they pay the deposit amount and submit their details through an application, the connection will be established within four hours. In addition, it is lightweight, compact and easy to carry. It is made of a three-layer composite material combined with high-density plastic and fibreglass,” he said, adding that the cylinder also indicates the level of LPG available.

Jyothi, manager of a private HP Gas agency in Jayamahal, said they had stopped accepting applications for new 14.2 kg LPG connections because a large number of applications are pending. “And there is no guarantee that the government will resume normal supplies for us to provide new connections. Currently, we are providing only 10 kg LPG cylinders, but customer response is low. If we have 30,000 consumers using 14.2 kg LPG, only a few hundred have purchased the 10 kg LPG option,” she said.

Ashwal Gowda, a consumer, said, “I applied for a new connection in May after shifting from my native Tumakuru to Bengaluru for work. But since the domestic connection has been delayed, I am forced to pay more in both deposit and refill charges for the 10 kg LPG cylinder.”

Distributors and gas agencies said many consumers are instead opting for induction stoves, especially those benefiting from the Gruha Jyothi scheme.

Arif Khan, manager of an electronics retail chain, said, “When the war began, we had a lot of customers walking in to purchase induction stoves. It was panic buying. Now, it has reduced. However, many people are purchasing them through online platforms. Prices range from ₹1,500 to ₹5,000.”

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