Union Petroleum and Natural Gas Minister M Veerappa Moily approved the setting up of 2,794 new LPG distributors and the new marketing discipline guidelines (MDG).

Further, the minister decided to raise the existing ceiling of refills a LPG distributor can sell by 10 per cent.

The decision to set up new LPG distributors is aimed at expanding the coverage of cooking gas. Since January, the ministry put this decision on hold pending approval of new MDG.

Currently, a distributor is entitled to 15,000 refill every month in cities with more than 40 lakh population. The limit is 12,000 cylinders of 14.2-kg each for cities with 22 lakh to 40 lakh population and 10,000 for towns with 10 to 20 lakh population. For towns or cities with less than 10 lakh population, the refill limit is 8,000 every month.

Oil Marketing Companies (OMCs) would issue fresh advertisements for appointment of 2,794 LPG distributors across the country following the approval of new MDG.

The three state-owned oil firms - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - together have about 13,000 LPG sales agencies or distributors currently.