Capping LPG cylinders in Jammu Kashmir

Chaotic situation has developed in regard to capping of LPG cylinders ordered by the Government after consultations with oil and gas majors in the country. On September 14, Union Government announced drastic reform in supply of LPG cylinders and fixed maximum of six cylinders per family per year on subsidized rates. However, additional cylinders would be available on higher rates. But this is not a uniform criterion. The Congress ruled states like Delhi will provide nine cylinders per family per year on subsidized rates and beyond that cylinders will be available on higher rates.

In the case of Jammu and Kashmir, only six cylinders per family per year have been allowed. It means that since half of the year (2012) is already gone, for the remaining period of six months till March 2013, each family in the State will get only three cylinders on subsidized rates. Anybody in need of extra cylinders will have to pay the higher price though that too is not sure because the Government is yet to decide what would be the price of non-subsidized cylinder.

This drastic decision has been taken by the Union Government in view of spiraling bill on energy resource in the country. The bill was likely to touch 200 lakh crore of rupees by the end of current financial year. The Prime Minister had touched on this point during his recent broadcast to the nation. He was emphatic in stating that some hard measures had to be taken to bridge over country's financial difficulties. Capping of the supply of LPG cylinders is the result of one such austerity measure. Hike in the price of diesel may not evoke as much of public resentment as the new policy of supply of LPG cylinders has evoked. The reason is that diesel is consumed by affluent sections of society and big business magnates who run diesel cars. But LPG is a dire necessity for all and curtailment of cylinder is going to adversely affect the middle and lower middle class of our population.

But the manner in which the entire matter is handled in our State has raised many fingers. Firstly, if Delhi ---- a Congress run State--- has been allowed nine cylinders per family per year, why should not this be possible for J&K State when we know that this hilly and mountainous State is debilitated economically in more than one way? Objectively speaking, the State should be allowed nine cylinders per family per year, and that would be justified in view of long winter and greater consumption as a consequence. Secondly, much chaos has been caused by asking consumers to get their gas cards re-verified although only three months back this exercise had been completed. Why are half hearted decisions taken by the gas outlets and why does the Government let them have their way. It is harassment of the people and unacceptable as it will call for PIL on a large scale. People have not forgotten the ordeal through which they were made to go when three months ago they were asked to get their gas cards verified. Re-enactment of that activity will earn the wrath of the people. Therefore the Government should immediately order stopping of re-validation of gas cards in the case of those that have already gone through the process.

Reports are coming in that besides ordinary consumers, even the Congress and NC activists including some ministers have expressed resentment to the capping of LPG cylinders to a maximum of 6 in the case of J&K State. Some ministers have even said that they would be raising the issue in the forthcoming cabinet meeting and will forcefully plead for a mechanism of rationalizing the decision. Revenue Minister disclosed that he has even written to the Chief Minister about people's resentment to the unjust capping of cylinders and demanded revision of the policy. He has also pointed out that re-validation of gas connection is harassment of civilian population.

In final analysis, it is true that the country is passing through financial hardship and the Government has to take drastic steps to check its deterioration. It is also true that ultimately people will have to bear the brunt. But at the same time, the reformative measures should be uniformly applicable, and secondly these should not cause harassment of the ordinary people. The Government should have worked out smooth transition from one set of conditions to another. Put in simple words, the Government has to do two things to bring this chaotic situation to an end. One is to increase the number of subsidized LPG cylinders from six per family per year to nine and second is to withdraw orders of re-verification of gas connections in such cases in which verification has already been done. This will ease the situation

Kashmir Valley faces LPG crisis

After last week's snowfall, Kashmir valley is facing severe crisis of Liquefied Petroleum Gas (LPG) and stock position claimed by the Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation (IOC) has come under scanner.

A highly placed source in one of the companies said that both the companies are lying about the stock position to the Government with the result there is LPG crisis here with the closure of the highway.

Minister for Consumer Affairs and Public Distribution (CAPD), Qamar Ali Aknoon, has called a meeting of the Oil Companies and local administration officials tomorrow at Srinagar to deal with the crisis.

And the divisional administration has now put Tehsildar and SHO Pampore as the Nodal Officers at HPCL Plant Pampore and they will furnish daily reports about the dispatch of LPG cylinders to the Government.

The sources said that the Companies are supplying the LPG at the rate of one cylinder per LPG connection for 20 days. "This standard is valid for other cities where the temperature is higher but in Kashmir valley the LPG consumption is double as the temperatures are sub-zero", the sources added.

The LPG plant of the HPCL has the storage capacity of around one lakh cylinders for a population of over 60 lakh in Kashmir valley where the daily consumption is around 25, 000 LPG cylinders. And by this standard the stored LPG can't last for more than 4 days.

One of the IOC LPG dealers in Srinagar said that the IOC has no storage capacity here and the dealers are worst hit with the snowfall. "We are dependent on the highway for LPG supply but with the closure of highway there was LPG crisis", said the dealer. "My demand for LPG is 700 cylinders per day but I am getting only 150 LPG cylinders and over 500 consumers have to go back without getting LPG despite waiting in the queue for hours in sub-zero temperatures", he added.

One of the HPCL LPG dealers in Srinagar said that he is getting 300 cylinders per day from the HPCL plant Pampore these days when the demand is over 800 cylinders. He said that normally he gets 600 cylinders per day but after the closure of the highway he has got only 300 cylinders per day.

The sources in the HPCL said that the company usually distributes 45 truckloads of LPG daily that is around 13, 000 cylinders but for past 10 days only 10 truckloads of around 3000 cylinders are being distributed per day in the Valley.

The Sales Manager HPCL Haroon Hamid said that during January, the HPCL distributed 1.32 lakh cylinders among the consumers. He said that on an average the HPCL distributes over 10, 000 cylinders in the Valley but these days they have been distributing half of what the company normally distributes.

The HPCL Manager, however, said that additional supply of the LPG is on its way and by evening they are getting 17,000 cylinders of LPG through Jammu-Srinagar National Highway. He said that 11 day stock of LPG is on way and this will meet the growing demand of the LPG in the Valley.

Meanwhile, Divisional Commissioner, Kashmir, Dr Asgar Hassan Samoon inspected the HPCL LPG plant at Pampore along with Deputy Commissioner Srinagar, Baseer Ahmed Khan. He held a meeting with HPCL officials and directed them to ensure rational distribution of LPG throughout the Valley.

The meeting was attended by Deputy Director CAPD, Shafqat Iqbal, Assistant Commissioner Revenue, Pulwama, SDPO Pampore, SHO Pampore, Tehsildar Pampore, Sales Manager HPCL, Haroon Hamid, Plant Manager Farooq Ahmed, OSD with Divisional Commissioner Aamir Ali and other senior officers of HPCL.

The Divisional Commissioner said that 32 oil tankers, 35 LPG tankers, 21 trucks loaded with chicken, 30 with sheep, 33 trucks carrying rice of FCI and 40 trucks with vegetables crossed Jawahar Tunnel by morning today.

Divisional Commissioner has given instructions to all Deputy Commissioners to visit far flung areas of their districts in order to redress the grievances of the public and constitute market checking squads to prevent hoarding.

A squad headed by Additional Commissioner Kashmir Abdul Majid Mir also conducted market checking in Parimpora Mandi, Maharaj Bazaar, Amira Kadal, and Hari Singh High Street, Srinagar. He also directed DC Srinagar to keep a squad at Pantha Chowk to monitor the conditions of the chicken and sheep being imported into the Valley. Divisional Commissioner also directed Chief Engineer Beacon Brigadier TPS Rawat to visit Shaitani Nalla and ensure removal of road blockades due to avalanches.

Meanwhile, disciplinary action was initiated against 99 Government employees of Bone and Joint Hospital, Maternity Hospital Sanat Nagar, Offices of Chief Engineer R&B, PMGSY, Irrigation Flood Control, PHE, MD Forest Corporation and Pollution Control Board as they were found absent during the surprise checking of attendance in offices by the Additional Commissioner Kashmir.

Valley records below freezing day temperature

With the restoration of power supply to Kashmir valley after 48 hours last night, there was some respite to the people but the cold wave conditions have further intensified in the region with Kashmir valley recording coldest day with maximum temperature falling below freezing for the first time this season.

The Weatherman has forecast that the cold wave conditions may continue to prevail in Kashmir valley with Western Disturbance causing light to heavy snowfall on January 14, 15 and 16. The disturbance will be at its peak on January 15 and he has warned that there may be further disruption of air and surface traffic to Kashmir valley with the snowfall on January 15.

The Met office has forecast light rain and snow at many places in Kashmir valley and hilly areas of Jammu division for next 24 hours.

A Meteorological Department official said that it was the coldest day of the season with Srinagar recording maximum temperature of minus 0.5 degrees Celsius and minimum minus 4.2 .

The official said that the South Kashmir township and gateway to Kashmir valley, Qazigund recorded a maximum temperature of minus 0.7 degree Celsius and minimum of minus 7.4.

The official said that South Kashmir tourist spot of Pahalgam recorded maximum temperature at minus 0.7 degree Celsius and minimum at minus 6.8 degrees Celsius.

Another South Kashmir tourist spot of Kokernag recorded a maximum temperature of minus 0.9 degree Celsius and minimum of minus 7.4 degrees Celsius.

Kupwara was the coldest town in Kashmir valley with maximum temperature recorded at minus 0.7 degree Celsius and minimum at minus 5.1 degrees Celsius.

The world famous ski resort of Gulmarg recorded a low temperature of minus 14.5 degrees Celsius and yesterday it was freezing at minus 16.5 degrees Celsius.

In the meantime, the restoration of the power supply brought respite to the people across Kashmir but with the subzero temperatures, water tapes are frozen and after power, there is water crisis in the Valley.

The water tapes were normally freezing during the night and by afternoon they were melting but today as the temperature continued to be subzero the water tapes remained frozen.

If the weather conditions continued to remain same, the water crisis will deepen further.

And with the closure of Jammu-Srinagar National highway for the heavy vehicles even today, the supplies in Kashmir valley have started depleting. The mutton, chicken, fresh fruits and vegetable crisis have been reported across Kashmir. The residents have complained of LPG shortage but the divisional administration said there is enough stock of it in Kashmir.

Kerosene Firewood burning in Kashmir poses more health problems

In the wake of absence of adequate electricity supplies and shortage of alternative supplies like LPG in the valley, many people have turned to conventional kerosene/ mud stoves for cooking meals this winter.Kerosene heaters/ stoves have been selling like hot cakes as people find it the most affordable and easily available source for cooking and warming themselves.However, a number of health risks people expose themselves to while using kerosene based heating/ warming and even lightning appliances are usually ignored.

Kerosene combustion/ burning produces the most toxic gases like Carbon dioxide, carbon monoxide , nitrogen oxides which lead to serious respiratory and cardiac ailments.

Their usage is particularly high in rural areas, where people are not provided with basic electricity and other facilities and health awareness is low.Incidentally, a number of tragic accidents which have occurred were due to burn injuries caused, especially to women and children while using kerosene heating/ cooking devices.“ People usually avoid exercising precautionary measures while using kerosene based devices which lands them into trouble. Many sub-district hospitals in the far flung areas treat hundreds of such cases on an average basis in winters. Children are the most affected age group as they indulge in mishandling of these dangerous devices,” said Dr. Ahmad Waseem, a physician at SKIMS, Soura.

People say that there does not seem to be much of the choice for them which is why they have again gone back to the usage of kerosene lamps/ heaters and stoves.

“ Electricity tariff is touching sky high prices. Even LPG is not readily available now is being sold by black marketers at unaffordable rates. What could a common man do? ,” asks Gaffar, a public employee.Usage of kerosene, charcoal and firewood is prevalent in valley and more than 60 per cent of the valleyites in some way or the other use these during winters for heating, cooking and other purposes. The state government , has been non-active in enforcing strict regulations on inddor pollution problem , even if the number of injuries and deaths due to smoke choking , lung cancers and other related diseases in far off areas of the valley are on a rise especially in winters.

3 CNG stations in J&K soon

In order to ease rush on petrol pumps in the State, Oil Industry of India would soon set up 3 CNG stations in the State.

This was revealed at a meeting of high level officers and representatives of various oil companies, consumer council members and representatives of traders federations of Kashmir and Jammu chaired by Minister for Consumer Affairs and Public Distribution (CAPD) Qamar Ali Akhoon.

The State Level Coordinator of Oil Industries R. C. Sharaf apprised the Minister that 2 sites have been identified in Kashmir and Jammu for the purpose. He said that work would be started shortly.

While reviewing the stock, storage and supply position of LPG in the State, the Minister said that Centre has already agreed to set up gas agencies at block level, adding that providing basic amenities to the consumers at their door steps is priority of the Government.

Mr Akhoon called upon the oil companies to make adequate stock of LPG cylinders in various parts of the Valley to meet the winter requirements. He stressed upon the authorities to strengthen the home and spot delivery system so that the consumers don't not face any problem in getting gas.

Hike in Prices

Steep hike in diesel, kerosene, LPG prices

In a steep hike, the Government today increased diesel price by Rs 3 per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs 2 per litre and slashed customs and excise duties on crude oil and products, sacrificing Rs 49,000 crores in revenues.

The increase, decided at a meeting of the Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee, is exclusive of local sales tax, Oil Minister S Jaipal Reddy told reporters here.

Diesel price in Delhi will be hiked by Rs 3.40 per litre to Rs 41.15 a litre with effect from midnight. Rates will vary at cities due to differential rates of VAT/sales tax.

Besides the price hike, the EGoM decided to abolish the 5 per cent customs or import duty on crude oil, and slashed the same on diesel and petrol by 2.5 per cent from 7.5 per cent. Also, excise duty on diesel was cut from Rs 4.60 per litre to Rs 2 a litre.

Reddy described the hikes, which had become necessary in view of a rally in international crude oil price, as "very modest and minimal".

The decision to cut customs duty on petrol also meant that the Rs 1.98 per litre hike needed to level retail prices with their cost would no longer be required, he said.

The reduction in excise duty on diesel would lead to a revenue loss of Rs 23,000 crore this fiscal, while in the customs duty cut the government will forego Rs 26,000 crore. The price hike would help the oil companies limit their revenue loss by Rs 21,000 crore, but they still would end the fiscal with about Rs 1,20,000 crore of revenue loss.

Oil Secretary G C Chaturvedi said the hike in price of diesel would add 0.3-0.4 per cent increase in inflation which is already hovering around 9 per cent, more than twice the rate in the US and almost four times of Germany's.

Asked about the political fallout of the hike, Reddy said, "Political problem will always be there. Economic problem will not wait for solution to political crisis."

Despite a steep hike of Rs 50 per cylinder in LPG rates, which equals Rs 50.55 increase by the then NDA Government led by Atal Bihari Vajpayee Government in March, 2000, domestic cooking gas will still be cheaper compared to that in the neighbouring countries.

LPG in Pakistan costs Rs 611.40 per cylinder, Rs 484 in Bangladesh, Rs 878.90 in Sri Lanka and Rs 821 in Nepal.

Similarly, the Rs 2 per litre hike in kerosene price, which comes on the back of last year's Rs 3 per litre raise, would raise rates in Delhi to Rs 14.32 per litre, still cheaper than Rs 43.95 in Pakistan, Rs 27.81 in Bangladesh, Rs 25.12 in Sri Lanka and Rs 42.61 of Nepal.

"I am sandwiched between economist on the one hand and populist on the other. Economist will say why only Rs 2 per litre increase in kerosene, while the populist will say why did you increase by even Rs 2 per litre," Reddy said. "Consumers can easily absorb the hikes announced today."

Asked how he managed to convince the Finance Ministry to forego revenues in a difficult year, he said, "I will not give you a glimpse into my kitchen. I will only serve the dishes."

"The only inflationary item is diesel. The hike is minimal," Reddy said, adding the basket of crude oil India buys has averaged USD 113 per barrel this quarter as against USD 75 per barrel at the time of last increase almost a year ago.

Today's hike in diesel and LPG rates, the first in almost a year, comes on back of last month's steep Rs 5 per litre increase in petrol price to Rs 63.37 per litre in Delhi.

The same EGoM had a year ago freed petrol price from government control and since then they have risen 23 per cent.

The current price of Rs 63.37 a litre in Delhi was short of its cost by Rs 1.98 per litre but the cut in customs duty has negated the required price increase, he said.

The increase in price of diesel, the most used fuel in the country, will stoke inflation. Diesel is the preferred fuel for transportation in the country and an increase in tis price will lead to increase in transportation cost of almost all commodities. It has a 4.7 per cent weight in the benchmark wholesale-price index and petrol 1.1 per cent.

State-owned fuel retailers were losing Rs 456 crore per day on selling diesel, domestic LPG and kerosene at Government controlled rates before today's decision.

Chaturvedi said oil firms were losing Rs 13.72 per litre on diesel and the price hike together with customs duty and excise duty cut would lower the revenue loss to Rs 6.22 per litre. Similarly, they were losing Rs 26.66 per litre on kerosene and Rs 381.14 on every 14.2-kg domestic LPG cylinder.

"There still will be under-recoveries (losses) even after the price hike and duty cuts," he said.