Uphill struggle for private LPG sellers in India

Vol 6, PW 18 (06 Nov 02) News in Brief

Selling LPG in India is difficult when state-owned oil companies get subsidies and private companies don't.

No surprise then to read that private LPG players have only managed to achieve an average 4.3% market share since LPG was liberalised in 1993-94. See below: Comparison of LPG sales by oil PSUs and by private players Year Private LPG sales LPG sales by PSUs Total Private sales as percentage of PSU sales 1993-94 7,000 tonnes 3.113m tonnes 3.120m tonnes 0.22% 1994-95 42,000 tonnes 3.434m tonnes 3.476m tonnes 1.21% 1995-96 73,000 tonnes 3.849m tonnes 3.922m tonnes 1.86% 1996-97 83,000 tonnes 4.183m tonnes 4.266m tonnes 1.95% 1997-98 222,000 tonnes 4.581m tonnes 4.803m tonnes 4.62% 1998-99 311,000 tonnes 5.041m tonnes 5.352m tonnes 5.81% 1999-2000 392,000 tonnes 6.029m tonnes 6.421m tonnes 6.10% 2000-01 403,000 tonnes 6.613m tonnes 7.016m tonnes 5.74% 2001-02 418,000 tonnes 7.310m tonnes 7.728m tonnes 5.41% 2002-03 (upto 31st August) 184,000 tonnes 3.123m tonnes 3.307m tonnes 5.56% Total: 2.135m tonnes 47.276m tonnes 49.411m tonnes 4.32%(Source: Ministry of Petroleum & Natural Gas)