During the year 1998 when there was acute shortage for Cooking Gas, Consumerfed, at the instance of Government of Kerala had decided to venture into the field of distribution of LPG by releasing LPG connections to consumers through Neethi Stores numbering over 1,000 spread out in all the 14 Districts of Kerala. As we were not had our own gas filling plant and organizational set up for distribution of LPG at that time, we have started the distribution by sourcing LPG cylinders from two parallel marketers, under agreement executed.
Later on we have purchased a LPG Bottling Plant in Palakkad and supply of LPG began from there in May 2000. LPG of high quality is being distributed to more than 60,000 consumers at present, under the brand name ‘Neethi Gas’. The cylinders of L.P.G. wer priced at par with the rate applicable to public sector oil companies like Indian Oil Corporation, Bharath Petroleum etc who were getting subsidy from central government. For this reason we have incurred heavy loss in this business. Later with Government sanction we have made marginal increase in the selling rate of Neethi Gas. This helped us to make Neethi Gas business viable. “Suneethi Gas” launched in 2007 is being attracted by the consumers. Now we have undertaking the refilling for BPL on commission basis.