IOC Cracks Down on LPG Distributors in Meghalaya: Show-Cause Notices, Suspensions to Curb Diversion and Black Marketing

CORRESPONDENT

SHILLONG: Amid heightened scrutiny over LPG distribution practices, Indian Oil Corporation has intensified enforcement measures across the Northeast, issuing three show-cause notices in Meghalaya while suspending six distributors across the region in a decisive move aimed at curbing diversion and ensuring transparency in last-mile delivery.

Amarjyoti Bordoloi said, “The show-cause notices were mainly issued because distributors were not adequately carrying out delivery confirmations from consumers. We have mandated that this should be at least 90 to 95 per cent. Meghalaya also has some inherent challenges, but if a distributor does not take a Delivery Authentication Code (DAC), the oil company cannot be sure that the cylinder is reaching the correct consumer. Wherever DAC percentages fall below the required standard, we have asked distributors to provide details of the consumers they have supplied. If they fail to do so, we treat it as diversion and take penal action as per the Marketing Discipline Guidelines.”

Responding to concerns about black marketing, he added that the inability to verify delivery to specific consumers raises the possibility of illegal diversion into the black market.

He further emphasized tighter monitoring mechanisms, stating, “We are strictly monitoring distributors to ensure that no activity adversely affects consumers. We are tracking deliveries and DAC figures and insisting that digital processes are maintained.”

Highlighting the scale of enforcement, Bordoloi said, “Across the Northeast, several actions have been taken. Around six distributors have been suspended. Meghalaya distributors, however, are performing relatively well, with only three show-cause notices issued so far. We are investigating these cases, and whenever we receive complaints—primarily through public grievance portals—we conduct enquiries and take appropriate action.”

Sashwati Mudoi said, “To curb hoarding and illegal diversion, OMC officials, in association with the state government of Meghalaya, have conducted around 319 inspections since last month. Action has been initiated against a few LPG distributors for not adhering to standard operating procedures, including digital protocols for booking and delivery authentication. So far, we have issued show-cause notices to three LPG distributors.”

Reassuring the public on supply stability, she added, “All oil marketing companies are taking strict action under the Essential Commodities Act, 1955. Adequate stock of petrol, diesel, and LPG is available in the state, and the supply chain is functioning normally. Citizens are advised not to pay attention to rumours, avoid panic buying, and refrain from spreading misleading information.”

She further said that the Government of Meghalaya and all oil marketing companies in the state have assured citizens that the supply situation remains stable, with uninterrupted availability being ensured.

Detailing the current LPG distribution network, Mudoi stated that services are being provided to approximately 3.7 lakh consumers through 66 distributors across the state. She added that distributors currently have adequate stock of domestic LPG cylinders, with no shortages reported. On average, 4,103 refills are delivered daily, and a backlog of about five days is being cleared as per the scheduled booking list.

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