Lpg Market Prospects in India

1785 Words Sep 26th, 2011 8 Pages
DEMAND AND SUPPLY OF LPG IN INDIA

INTRODUCTION

According to the latest scenario of the Natural Gas Analysis, the Natural Gas market in India is expected to be the one of the fastest growing in the world during the next two decades. Among its segments LPG has made a substantial progress to become the most convenient, cost effective and pollution free means of fuel, especially in the middle class segment. LPG market in India is not at all versatile and competitive. It’s a part of the Indian economy is still untouched by privatization. After 1991, many companies tried jumping in the LPG market but could not survive against Government OMCs like IOCL, HPCL and BPCL. The reason behind such failure is the heavy subsidy given by the
…show more content…
Stimulating Demand in Domestic sector:
Vision 2015 of Govt. of India
1. Increase in Domestic LPG Connections: * Focus on areas where LPG penetration is low by giving incentives ‐Raise population coverage from 45% to 75%. * Increasing LPG customer from 115million to 160 million by 2015 * Switch Over from Kerosene to LPG * While 87% of urban households are using LPG only 17% of rural population in India is on LPG. * In rural areas firewood is the most common fuel, considering the availability and affordability * An affordable alternative is a necessity for rural masses
Government is stimulating demand in rural area through Rajiv Gandhi Gramin LPG Vitaran
2. Common LPG Kitchen‐Making LPG affordable:
•Opening up community Kitchens in all villages with population > 5000 as a part of Corporate Social Responsibility

Projected Growth in LPG Demand shall be 8-9% year on year till 2015.
•Shall improve reach of LPG
•A low cost model of distribution sustainable for cluster of villages