Indian oil marketing companies (OMCs), both public and private, have identified a big opportunity in marketing small cylinders of liquid petroleum gas (LPG), in view of growing demand from migratory populations as well as a government push to increase penetration of LPG. The government allowed the sale of 5kg LPG cylinders in 2013 with or without domestic pressure regulators through retail outlets of oil marketing companies. A 5kg LPG cylinder costs Rs.840 on first purchase. As of April 2016, there were 2.87 lakh LPG customers in the 5kg LPG segment, against 20.15 crore customers in the 14.2kg segment. “The 5kg LPG segment is what we find attractive going forward.

Source: Mint August 22, 2016 19:30 UTC