A recent audit report on import and distribution of LPG cylinders in the country has found that distributors had overcharged consumers while refilling the cylinders. Consumers were charged for home delivery services, without actually providing the services by the distributors, amounting to Nu 112 M from 1999 till last October.
Until October last year, a consumer paid Nu 508 for every refill of a gas cylinder. This amount, according to the special audit report is inclusive of the home delivery services. However, the distributors in the country had never provided the services. Instead, they had added an additional of about Nu18 against each cylinder, and raised the refill price to Nu 508 on the subsidized rate.
In1999, the three distributors collected about Nu 4.3 M for home delivery services from consumers. The amount rose to Nu 9 M in 2010 and Nu 10 M in 2012.
Last year, the distributors collected about Nu 9 M.
One of the distributors said the pricing structure is borrowed from the model in India, and that prices are accordingly set by the Trade Department. The distributor however said, they were not aware of the home delivery service that was already there in the pricing structure.
The audit report says it is the Department of Trade who failed to protect the citizens from marketplace fraud and unfair business practices.
The economic affairs ministry said the LPG cylinder dealer’s commission was declared on merged basis in the past and it included all expenses. However, the Ministry had rectified the issue by not including the delivery costs in the new pricing structure since last November.
Meanwhile, the audit has directed the trade department to collect the inadmissible home delivery charges of Nu 112 M from all the three distributors and deposit in the Audit Recoveries Account at the earliest.
