Lpg Market Prospects in India
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 Government in domestic LPG. The commercial and Industrial LPG is unsubsidized because of which companies like RIL and Assar are giving tough competition to PSUs in this section. Heavy subsidy on domestic LPG creates a no entry for any private player. For a foreign entrant there is a great scope in the non-subsidized and commercial sector. For inviting the private players, government should publicize auto gas (LPG) as a major fuel for automobiles.
In a deregulated market, LPG is closely linked to the international prices, and these have fluctuated significantly in recent years. India is the fourth largest consumer of LPG in the world after USA, China & Japan. India is the third largest consumer of LPG in domestic sector in the world after China and USA. The market of LPG is lies in two sectors namely industrial & commercial LPG and subsidized Domestic LPG. The ratio of customers of domestic and non-domestic LPG is 9:1. Three Million Liquefied Petroleum Gas cylinders are supplied in the Indian households for cooking food per day. There is a steady growth of 8% per annum in LPG Consumption in India according to the latest figures and the Compound Annual Growth Rate for the fiscal years 2011-2013 will be around 9%. The main reason
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 Government in domestic LPG. The commercial and Industrial LPG is unsubsidized because of which companies like RIL and Assar are giving tough competition to PSUs in this section. Heavy subsidy on domestic LPG creates a no entry for any private player. For a foreign entrant there is a great scope in the non-subsidized and commercial sector. For inviting the private players, government should publicize auto gas (LPG) as a major fuel for automobiles.
In a deregulated market, LPG is closely linked to the international prices, and these have fluctuated significantly in recent years. India is the fourth largest consumer of LPG in the world after USA, China & Japan. India is the third largest consumer of LPG in domestic sector in the world after China and USA. The market of LPG is lies in two sectors namely industrial & commercial LPG and subsidized Domestic LPG. The ratio of customers of domestic and non-domestic LPG is 9:1. Three Million Liquefied Petroleum Gas cylinders are supplied in the Indian households for cooking food per day. There is a steady growth of 8% per annum in LPG Consumption in India according to the latest figures and the Compound Annual Growth Rate for the fiscal years 2011-2013 will be around 9%. The main reason