Gas

Introduction

Liquefied Petroleum Gas or Liquid Petroleum Gas (LPG or gas as it’s most commonly known as) is a flammable mixture of hydrocarbon gasses produced by processing petroleum or "wet" natural gas. It is primarily derived from fossil fuel sources, produced during the extraction of crude oil. It is also generated from petroleum or natural gas streams as they surface from the Earth’s core.

LPG was first developed by Dr. Walter Snelling in 1910, and the first commercial applications started in 1912. It actually accounts for around 3% of all energy used and burns fairly cleanly, with no soot and very minimal traces of sulphur emission. Since it is a gas, it does not pose a threat to soil or cause water contamination, but it does cause some negative effects to the environment.

LPG is the most consumed domestic fuel in India. It’s primarily used in homes for cooking. It is also used in small scale industries as fuel. It has also been adapted for use in vehicles as fuel.

Benefits of LPG over Other Fuels

• LPG is commonly used for domestic and commercial purposes. It has a lot of applications similar to petrol, diesel or electricity.
• It's a very clean fuel source. It does not contain sulphur, so it burns much better than conventional materials such as coal.
• LPG has a higher heating efficiency, which makes for uniform heating. This lets you prepare food quicker than normal.
• It's easy to ship and safe to stock. 
• LPG is more efficient than other sources of energy. Because most energy sources emit carbon dioxide. LPG, on the other hand, releases just about 81% of the carbon dioxide released by oil. Compared to coal, another source of energy, LPG emits just 70% of carbon dioxide.

LPG in India

LPG or Liquefied Petroleum Gas is the most commonly consumed domestic fuel in India. It was introduced as Indane Gas by Indian Oil Corporation Limited in the 1960s. Since then, other public sector and private sector gas firms have been engaged in the sale of LPG to millions of households in India. More than 80% of households in India have LPG connections in their kitchens. It is also used as fuel in light motor vehicles and a few small businesses even use it as main fuel.

LPG is highly systematized in India, which means that there are stringent rules and regulations for one to have a new connection. Often, one household can only get a connection from one distributor. You can't have multiple connections under your name.

LPG connections are offered by both public sector and private players in India. The major LPG connection providers in India are:

• Indane
• HP Gas
• Bharat Gas
• Supergas
• Total Gas
• Reliance Gas
• Jyoti Gas

Public Sector LPG Agencies

Public sector LPG firms have a crucial role to play in the domestic industry. There are nearly 263 million LPG connections in India. Managing demand and supplying it to so many households is a monumental challenge. The three major state owned LPG Gas Firms are Indane, Bharatgas and HP Gas.

The main problem with public sector LPG connections is the volume of paperwork required. These firms are very rigorous about the paperwork and require extensive documentation for new customers. They take quite some time to issue you a new connection, which poses some inconvenience to applicants who are in desperate need of an LPG connection. However, the time taken to get a new LPG connection from a public sector agency has significantly reduced in recent years.

How do I get a public sector LPG Gas Connection in India?

The process for getting a gas connection is quite simple. You can contact any of your closest LPG dealers and apply for a connection. While essentially similar, there could be some slight variations in the application protocol for public sector and private sector LPG connections.

Keeping up the changes of the digital world, public sector LPG companies today offer hassle-free online LPG gas connection registration. A few years back, customers had no other option, but to physically visit his/her closest dealer, submit the required paperwork and wait for weeks (or even months) to get a new LPG connection. Things have changed significantly today. Applying for a new LPG connection is really quick and can be completed online.

Application process for Public Sector LPG Connection

• Visit your nearest LPG dealer’s office. 
• Fill up and submit the form and provide copies of your address and identity proof.
• Aadhaar card copy should be submitted if you opt to get the govt-offered subsidy for the cylinders.
• If you don’t have a valid address proof for the address, you can submit an affidavit duly notarized by a notary.
• Pay the stipulated subscription amount.
• Once the documents have been verified, the application shall be processed and a connection will be allotted to you.
• Once you get a confirmation message, you can get your first cylinder delivered from the dealership.

Documents Required to Apply for a New Gas Connection

The two important documents you need to submit for a new gas connection are Identity proof and address proof. you will also need to give a few passport size photographs. Here are the accepted documents for each:

Address Proof: 

• Ration card
• Aadhaar card
• Passport
• Driver's Licence
• House Registration Document
• Recent Utility Bills (Electricity/Telephone/Water Bill)
• Bank passbook

Identity Proof

• Aadhaar card
• Driving Licence
• Passport
• PAN Card
• Government Issued Photo ID

Cost of a New Gas Connection

Generally, customers have to pay a security deposit and the cost of the regulator at the time of getting a new connection. The security deposit is based on the capacity of the cylinder you have chosen.

Security Deposit for Pressure Regulator

Suraksha LPG Hose Cost / Price

Other Charges

PAHAL – Direct Benefit Transfer Scheme for LPG Connections

LPG prices in India are highly systematized. The government spends an immense amount on subsidies for gas cylinders used for domestic purposes. However, for several years, this amount of subsidy was being granted directly to gas companies who have not completely compensated consumers. To put an end to this, the government decided to pay the subsidies directly to customers. Thus the DBTL scheme was born.

Under this scheme, consumers receive 12 cylinders every year at a subsidized rate. They pay the full price of the cylinder to the distributor and receive the subsidy amount directly in their bank account. This was a huge exercise that was carried out throughout the country. It also contributed to the weeding out of lakhs of duplicate connections. This system meant that the benefits were passed on to deserving beneficiaries. This central government scheme is called PAHAL.

In order for consumers to obtain this benefit under PAHAL, they must link their Aadhaar number to their LPG connection. This means that the subsidy amount is transferred directly to the bank account linked to the Aadhaar number.

Options to Receive LPG subsidy

While the scheme was initially implemented in 2013, the government adopted a series of changes and unveiled a revamped scheme in 2015. As per the new regulations, the LPG user will now earn discounts in his bank account in two ways. A customer will be named CTC(Cash Transfer Compliant) when he joins the system and is ready to receive the subsidy into his bank account.

The two options are for customers to receive the LPG subsidy are:  

Option I (Primary): Where Aadhaar number is valid, it will be used for subsidy transfer. Thus, the LPG customer has to link his/her Aadhaar number to the bank account number and the LPG consumer number. The subsidy amount is settled directly in the customer’s bank account.

Option II (Secondary): If an LPG consumer doesn't have an Aadhaar number, he can still get the subsidy directly into his bank account without using Aadhaar number. This process was implemented in the revamped scheme to ensure that LPG subsidies are not denied to any LPG user due to lack of Aadhaar number.

Under this process, consumers can either 

Submit their bank account details (bank account holder name / account number / IFSC code) to the LPG distributor to be updated on the LPG database

OR

Submit their current LPG customer information, along with the 17 digit LPG user ID, to the bank.

PAHAL Helpline Numbers

If consumers have any queries regarding this PAHAL (DBTL) scheme, they can call this helpline:

How to Link Aadhaar to LPG?

As stated above, it is necessary to link your Aadhaar number with your LPG connection if you wish to receive the subsidy directly into your bank account. There are many ways to link your Aadhaar to your LPG connection. Let us take a look at the steps that need to be taken to link your Aadhaar and LPG.

Linking Aadhaar and LPG online

It is quite easy to link an Aadhaar card to LPG online. Following is the step-by-step process to follow for linking Aadhaar to your gas connection via online method.

• Login in to UIDAI's official website and enter the Aadhaar seeding portal of UIDAI
• Application for Aadhaar access to your gas connection is available online. Fill out your address details with the name of the district and the state listed in the online application for seeding of your Aadhaar
• In this page, pick the form of benefit you wish to receive, "LPG'.' Pick the name of the gas company and the corresponding scheme to link your Aadhaar card to your LPG connection
• After you have chosen your ‘benefit type', you will need to choose the name of your LPG gas distributor along with submitting your LPG gas connection "consumer number”.
• To complete the seeding application, enter your personal information such as telephone phone, email address and Aadhaar number.
• Check the information that you entered and press the "send" button to send an Aadhaar seeding form to link it to your LPG connection
• Once the application has been submitted, an OTP (one-time password) will be sent on the mobile number or email ID listed in the application
• Input generated OTP (one-time password) in the relevant field and enter the shown security code, and press the "send" button to complete the process.
• If the application is correctly submitted, it will be approved upon review by the officers.
• After the request is validated, a confirmation message will be sent to your registered email address or mobile number concerning the Aadhaar number that has been linked to your LPG gas connection.
• Aadhaar & LPG linking status search is available on the respective gas company’s website or at the PAHAL portal.

Through your Distributor

Your distributor is the first point of contact with the gas company. They can also help you link your Aadhaar and LPG.

• Visit your distributor’s office. 
• Fill up the subsidy application form available there. You can also download this form from the LPG company’s official website.
• Submit the form along with a photocopy of your Aadhaar card. 
• The distributor shall update the official records and you will start receiving the subsidy in the bank account linked to your Aadhaar card.

Steps to link your Aadhaar with LPG Through SMS 

Consumers can also link their Aadhaar with LPG by sending an SMS from their mobile. For that, your mobile number should be registered with the LPG Company.

Indane Gas - Send an SMS to your LPG company in this format to the number listed on the company’s website – UID Aadhaar number (e.g UID 123458796587)

Bharatgas – Send an SMS to in the below format to 57333 (All India), 52725 (Vodafone, MTNL, Idea, Airtel & Tata users)

UID Aadhaar number (e.g UID 123458796587)

HP Gas - Send an SMS in the below format to “HP ANYTIME” number for your region listed on the HP Gas official website.

UID Aadhaar number (e.g UID 123458796587)

Aadhaar and LPG linking via IVRS

Every gas company has developed an IVRS system for various services relating to your LPG connection. Linking your Aadhaar with your LPG can also be done through the IVRS system.

• Call your LPG company’s IVRS system number. It can be found through your distributor or found on the cash memo given to you at the time of refill delivery.
• Follow the instructions on the IVRS to link your Aadhaar with your LPG account. 

Aadhaar and LPG linking via Post

You can send a copy of your Aadhaar document by Speed Post, with your name, Consumer Number, Address and Mobile Number, to the LPG Distribution Company's relevant office address. Check the official websites for the office address where you can send the post.

Aadhaar and LPG linking via Call Centre 

Call the toll-free number 18002333555 and let the call center agent know that you want to link your Aadhaar and LPG and follow their instructions.

PMUY – Pradhan Mantri Ujjwala Yojana

Pradhan Mantri Ujjwala Yojana (PMUY) seeks to protect the wellbeing of women and children by supplying them with a clean cooking fuel – LPG – so that they do not have to risk their health in smoky kitchens or walk around unsafe areas where they gather firewood. India is home to more than 24 crore households out of which 10 crore households are still denied LPG as cooking fuel and have to rely on firewood, coal, cow dung cakes, etc. as the primary source of cooking. Smoke from burning these fuels causes troubling household emissions and adversely affects the health of women and children who have many respiratory diseases/disorders.

Pradhan Mantri Ujjwala Yojana was unveiled by Hon'ble Prime Minister Shri Narendra Modi on 1st May 2016 in Ballia, Uttar Pradesh. Under this program, 5 crore LPG connections will be given to BPL (Below Poverty Line) families with funding of Rs.1600 per connection for the next 3 years. Ensuring empowerment of women, especially in rural India, the connections will be offered in the name of women in households. Rs. 8000 crores have been reserved for the operation of the scheme. The identification of the BPL families will be carried out via the Socio Economic Caste Census Results.

PMUY is expected to result in an increased job of approximately 1 Lakh and to have a market potential of at least Rs. 10,000 crores in the next 3 years of Indian Industry. The introduction of this scheme would also give a big boost to the 'Made in India' movement, as all suppliers of tubes, gas stoves, regulators and gas hoses are domestic.

Give It Up Campaign

Domestic LPG is significantly subsidized by the Government of India, and any cylinder we use in our kitchen is largely funded. This translates into a massive annual subsidy expense on the Government, consuming precious resources that might otherwise have been used in construction activities. Subsidy on domestic LPG should be utilized to address the needs of genuinely poor people. Thankfully, other able and knowledgeable citizens are not in favour of subsidies, opting to pay the market price for the gas and thereby making a personal commitment to nation-building.

Why should you give up your LPG subsidy?

• Any subsidy given up by a consumer results in more money to the exchequer which can be used for nation development exercises.
• The additional money can be used to provide connections to households with no LPG connections.
• Poor households benefiting by the Pradhan Mantri Ujjwala Yojana Scheme can lead a better life with cleaner fuel.
• Helps in reducing the fiscal deficit by reducing the subsidy allocation in every budget.

How do I give up my LPG Subsidy?

Subsidies are given for LPG connections with the 3 state owned oil companies; Indane, HP Gas and Bharat Gas. You can either login to the respective gas company’s official website to give up subsidy or approach your distributor and submit the relevant form to give up your subsidy. You can also do that through the MYLPG portal.

Private Sector LPG Connection

Many private companies are involved in the supply chain of LPG in India. Supergas can be identified as a leader with the most years of experience followed by Jyoti Gas and Reliance Gas. More and more private companies are joining this market due to the growing demand for domestic use and fuel consumption of vehicles.

In recent years, private players have forayed into the LPG arena in India. The major players are:

• Super Gas
• Total Gas
• Jyoti Gas
• Reliance Gas 

Private players offer their customers a range of value-added features, such as online booking, online billing, easy documentation, faster distribution and more. You will get a new connection with just your mobile number and proof of address. The connection shall be issued on the same day and the cylinder shall be delivered within one day of the booking.

Benefits of Getting LPG Connection from Private Companies

A private LPG connection has a number of benefits as compared to the state regulated ones.

• Immediate gas connection is a value that is absolutely commendable
• The LPG gas connection with every private agency is an easy and quick method with almost nil paperwork.
• All you need to do is have a copy of one of your national identification cards and proof of residence.
• Many private companies offer connections in less than a day.
• Security deposits and other payments (if any) will be completely refunded to you.
• You don't need to book days in advance to refill. Just a phone call and the cylinder will be delivered in less than two days.
• There can be no concession on quality or quantity because they have to conform with strict regulatory norms with respect to quality or quantity.

How can I get an LPG connection with a Private Gas Company?

• Private Gas companies assure you of a quick and hassle free application process.
• You can approach any of their offices to apply for a connection. Most of them even allow you to apply online on their customer portal.
• You will be required to submit basic details like your name & address. 
• Private gas companies don’t ask for much documentation. You just need to submit your ID proof and Address proof to get a connection.

Government LPG Connection VS Private LPG Connection

FAQs on LPG Gas

End Note

With annual imports of more than 16 million metric tons in the 2018-19 financial year, India is the world's second-largest importer of LPG. India's Liquefied Petroleum Gas (LPG) penetration exceeded 97.5 per cent as of 1st April 2020, compared to 94.3 per cent reported in the same month last year, according to a study published by the Petroleum Planning and Analysis Cell (PPAC). LPG penetration, the percentage of the population with cooking gas connections, was 56% in April 2015. The nation's effective LPG domestic consumers have just about doubled during the last five years, from 14.86 crore in April 2015 to 27.87 crore in April 2020.