May 25 2008
IOC to launch fiber LPG cylinders in November!
The Indian Oil Corporation (IOC) will soon launch lightweight LPG cylinders made of fiber for domestic consumption, by November 2008 to resolve the domestic LPG cylinders crisis. The cylinders which will be available in different colors will be easier to handle as it will be lighter than conventional one.
The IOC will start distributing the fiber-made cylinders in three Indian cities, Bangalore, Hyderabad and Chennai. It will be available on non-subsidized rates and will be test marketed in Bangalore and Hyderabad first. The cylinder will be available off the shelf and will be serviced at consumers’ desired time. The conventional household cylinders have several restrictions, which this will be free of.
It is also viewed as being suitable for households with modular kitchens. With weight around 16 kg, inclusive of 10.5 kg of the fuel, it will have a transparent panel for users to track the level of the content.
It will be non-subsidized cylinder meant only for a classified market. The cost however will be similar to international LPG prices. It will almost be at par with the current 19 kg and higher capacity cylinders for commercial uses. Presently, the cost of commercial LPG is rupees 58/kg. The cost of subsidized product for domestic use is, however, rupees 20/kg.
The company will announce a global tender for the import of two lakh fiber-made cylinders. The IOC itself will use nearly one lakh cylinders, the other one lakh will be distributed to other oil companies like Bharat Petroleum Corporation Limited (BPCL).
