Pradhan Mantri Ujjwala Yojana (PMUY) Consumers Offered LPG Connections Of “Indane Chhotu” 5kg Cylinder

In all consumer products, be it (FMCG) Fast Moving Consumer Goods like Shampoo, Chips etc., it was observed by Marketing Strategists that the smaller version of the products induced more consumers towards the smaller product due to the affordable price range.

Keeping the strategy in mind, the government, along with the ever-rising fuel prices, “Indane Chhotu”, a 5 kg LPG cylinder costing Rs 500 as compared to Rs. 900 & above for the normal 14.2 kg LPG cylinder as a number of consumers could not shell out the larger amount in a single payout.

The increase in usage & uptake of these 5 kg cylinders would be on the increase if the government would manage the distribution through fair price shops network across the entire country; also, with no subsidy insight, the consumers will definitely opt for the smaller version of LPG cylinder.

Huge Oil Corporations, which are basically run by the state, have shown appreciation to the idea of using the fair price shop network retailing of the LPG cylinders smaller 5kg version.

In the state of Kerala, the system of Electronic point of sale (ePOS) through fair price shops has started working as a business model for the rest of the states in the country by the state-run Indian Oil Corporation (IOC).

IOCL officials in Kerala have stated that the price of the small 5kg cylinder at the Fair Price Shops network will be the same as the market price.

The smaller version was brought into the market to cater to the needs of Hawkers, students, all of who were dependent on the grey market for the refilling of their cylinders as they had no official LPG connections due to lack of official addresses.

The fiscal year of 2020-21 has recorded an increase in the sale of these smaller version LPG cylinders after they were officially relaunched in the market under the brand name of “Indane Chhotu” from the month of December 2020.

The sales of this smaller version went up furthermore after the government stopped the subsidy given on 14.2 kg standard version domestic LPG cylinders, to encourage a regular refilling through proper channels, a swap from 14.2 kg cylinder to the smaller version was offered to consumers falling under the Pradhan Mantri Ujjwala Yojana (PMUY).

India imports more than 55 % of its LPG requirements; hence the cost of a totally unsubsidised LPG cylinder depends on the rise & drop in global rates of LPG.