Free Trade LPG (FTL) cylinders
Why in News?
Free Trade LPG (FTL) cylinders are in the news because the Indian Government recently doubled the daily allocation of 5kg FTL cylinders to states and Union Territories.
Core Concept & Branding
- Popular Name: Often marketed by Indian Oil as "Chhotu".
- Target Audience: Specifically designed for "mobile" populations—students, migrant professionals, and low-income households who lack permanent address proof or have low consumption needs.
- Weight: Standardized as a 5kg mini-cylinder.
Key Features & Benefits
- Minimal Documentation: No address proof is required. A simple Proof of Identity (POI) is sufficient for a new connection.
- Availability: Sold over-the-counter at petrol pumps (Company Owned Retail Outlets), designated distributorships, and even select Kirana (grocery) stores.
- Pricing: Sold at market-driven (non-domestic) prices. Unlike the 14.2kg domestic cylinders, these are typically not subsidized.
- Portability: Its small size makes it easy to transport and ideal for those living in limited spaces or frequently moving.
Financials & Schemes
- Security Deposit: Often involves a refundable security deposit (approx. ₹900) plus the cost of the gas and a pressure regulator.
- Buyback Plan: Many OMCs offer a buyback option where customers can return the cylinder and get a portion of the security deposit back if they relocate.
- Refill Flexibility: Refills can be taken as needed without a fixed monthly limit, allowing better cash flow management for daily earners.
Safety & Standards
- BIS Certified: Manufactured to strict safety standards, often featuring the same safety valves as larger cylinders.
- Optional Insurance: Customers can request insurance coverage for life and property in the event of an accident occurring at their premises.
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