Advancing LPG Cylinder Management with QR Code Technology

Bengaluru , 5th June 2024 – The Grahak Dakshata Kalyan Foundation, a dedicated organization committed to protecting consumer rights and promoting social welfare, strongly supports the government’s latest initiatives to enhance the management of LPG cylinders using advanced QR code technology.

In an effort to improve the efficiency and transparency of LPG distribution, Indian Oil Corporation Limited (IOCL) has initiated a pilot project at the Madanpur Khadar Bottling Plant in Delhi. This project involves tagging LPG cylinders with QR codes to enable precise tracking and inventory management. As of December 7, 2023, IOCL has successfully dispatched over 165,000 QR-tagged 14.2 kg cylinders to two distributors in the Delhi market.

This QR code system is part of a broader strategy by public sector oil marketing companies (OMCs) to prevent the theft and illegal sale of lightweight LPG cylinders. Key measures include:

  • Weighing and Sealing: Bottled cylinders are weighed and sealed with tamper-evident seals.
  • Quality Control: 10% of cylinders undergo statistical quality control.
  • Pre-delivery Checks: Cylinders are checked at bottling plants before delivery.
  • Portable Scales: Delivery personnel carry portable weighing scales to verify cylinder weight at delivery points.
  • Inspections and Awareness Campaigns: OMC officers conduct voluntary inspections and public awareness campaigns to ensure compliance and educate consumers.

Despite these benefits, some gas agency owners and hawkers from public sector units (PSUs) have opposed the new distribution system. They have not been cooperating and have even gone on strike in protest. However, it is crucial to recognize that customers have the right to wait and verify that the connection has been properly completed before accepting the delivery.

In addition to enhancing cylinder management, the Direct Benefit Transfer for LPG (DBTL) scheme, implemented in January 2015, ensures subsidies are directly transferred to customers’ bank accounts, either through Aadhaar Transfer Compliant (ATC) or Bank Transfer Compliant (BTC) modes. Since August 2021, these payments have been managed through the Public Financial Management System (PFMS), which provides a real-time, reliable management information system.

This system has helped eliminate ghost accounts, duplicate accounts, and dormant accounts, significantly curbing the misuse of subsidized LPG for commercial purposes. As a result, over 4 crore domestic LPG connections have been blocked due to missing or duplicate connections, and more than 1.1 crore consumers have voluntarily waived their subsidies under the “GiveItUp” campaign.

Call for Broader Implementation

We urge the government to expedite the nationwide implementation of QR code tracking for all LPG cylinders. This technology will play a crucial role in:

  • Reducing Illegal Sales: Preventing the black market sale of LPG cylinders.
  • Enhancing Safety: Reducing the number of domestic accidents caused by unauthorized storage and handling.
  • Increasing Revenue: Ensuring proper taxation and preventing loss of revenue due to illegal activities.

During our recent conference, we highlighted the significant price difference between commercial and domestic LPG usage, which often leads to black marketing and illegal storage of 14.2 kg cylinders. Our foundation is committed to advocating for innovative solutions, such as barcoding or biometric systems, to curb these illegal activities and ensure fair and safe distribution of LPG.

We believe that these initiatives will receive widespread support as they promote transparency, consumer safety, and efficient resource management.

For further information, please log on to

www.grahakdakshata.com

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