Overcharging may cost gas agencies’ licence: oil firms

Licence of gas agencies would be terminated if their delivery agents overcharge the customers than the original price, LPG companies inform the Madras High Court on Wednesday. The companies made the submission while replying to a PIL petition seeking to stop such practices.
Overcharging may cost gas agencies’ licence: oil firms
Madras High Court

Chennai

“If there is a complaint against a gas agency for more than four times regarding the cylinder agents overpricing, their licence would be terminated and the customers would be compensated,” read the counter statement filed by LPG companies.

“We have also asked the customers to pay online to avoid paying more. If the agents demand more money, customers should immediately contact the customer care to file a complaint,” read the submission.

When the plea came up before the division bench comprising Justice MM Sundresh and Krishnan Ramasamy, Hindustan Petroleum and Bharat Petroleum submitted that they have collected Rs 21.74 lakh from gas agencies as fine for overcharging the customers in Tamil Nadu alone for 2019-20 period.

Granting time for Indian Oil Corporation to file a statement, the bench adjourned the case to April 8.

The issue pertains to a PIL filed by one Loganathan that gas agencies were overpricing the customers up to Rs 100 especially those who are living in second or third floors even though the total price of the cylinder includes the delivery charge.

Noting that there are 23 crore gas cylinder connections in India, the petitioner alleged that local agencies were collecting crores of rupees illegally from the customers for delivering the cylinders.

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