High refill, deposit costs keep consumers in Karnataka away from 10 kg LPG option
Consumers in Karnataka are avoiding 10 kg LPG cylinders due to significantly higher refill costs and deposit requirements compared to standard 14.2 kg cylinders. Oil companies are promoting the smaller cylinders as a solution to supply shortages, but the market-rate pricing makes them unattractive to the public.
Why it matters
Illustrates the economic challenges of energy accessibility and the impact of global supply chain disruptions on local consumer costs.
Since the West Asia war began, State-owned oil companies have been encouraging consumers to switch to 10 kg LPG cylinders.
While Hindustan Petroleum Corporation Limited (HPCL) launched the 10 kg LPG HP Navya, Indian Oil Corporation Limited (IOCL) introduced Indane Xtralite, and Bharat Petroleum Corporation Limited (BPCL) rolled out Bharatgas Lite ZIP, all these variants are being promoted by gas agencies to consumers seeking new 14.2 kg LPG connections.
However, gas agencies and distributors say the response has been poor because of the stark difference in refill prices between the 14.2 kg and 10 kg cylinders, as well as the higher deposit amount required for the latter.
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