New Delhi: Faced with mounting losses, Indian Oil Corp, the nation's largest fuel retailer, has 'temporarily' stopped giving new domestic cooking gas (LPG) connections, a move that has led a wait list of over two lakh.
"We have not bought new cylinders for almost one year now due to cash crunch (and so) we do not have equipment to give new connections," IOC Chairman Sarthak Behuria said.
IOC loses Rs 338.53 on sale of every 14.2 kg LPG cylinder and its daily loss on sale of the domestic fuel is about Rs 33 crore.
"We do not have working capital to service new consumers. So temporarily we have stopped issuing new connections," Behuria said. "Consumers are welcome to enrol but we have not given new connections since April."
Behuria said the move has led to a wait list of over two lakh consumers. "These are difficult times. We are faced with huge working capital shortage."
IOC, which has 56 per cent of the over 9.8 crore LPG consumers in the country, is projected to lose Rs 1,21,015 crore on sale of petrol, diesel, domestic LPG and kerosene in the current fiscal as government has not allowed it to raise retail prices in line with rise in cost.
The company also also resorted other measures to shore up its working capital including asking dealers to pay for supplies in advance and stopping consumer credits.
"We are also trying to restrict diversion (of domestic LPG) for commercial use," Behuria said.
The subsidised domestic LPG cylinder often finds way to hotels and restaurants and industries and automobiles who are supposed to use market priced gas.
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