A Project Report On

“Alternative fuels of LPG such as PNG”
(At Noida, Greater Noida and Ghaziabad)

Submitted to Indian Oil Corporation Limited


Shilpa Kapoor BIT, Noida


In the broader sense training is necessary to make the students of professional institutions familiar with industrial environment. This not only helps professionals to speedily accommodate themselves in industries but also to have better usage of their studies. To be dynamic, strategic and work aggressively they need to know the policies , procedures and trends going in the present industrial environment apart from their studies The training fulfils all these needs. Whether it is the question of demonstrating a modernized procedure, step by step to an old production hand or guiding a new division head through the intricacies of preparing his own budget, the responsible supervisor or manager must make the trainee learn and communicate. The purpose and objective of the study is to analyze the different aspect of financial and marketing position of the organization and list out the suggestions, recommendations based on the studies. The main source of study is primary and secondary data collected from the Indian Oil Corporation Limited and Indraprastha Gas Limited and the survey conducted. The various modern and standard tools to achieve the objectives of the study carry out the analysis of the data.

A formal statement of acknowledgement will hardly meet the ends of the justice in the matter of expression of my deeply felt sincere and allegiant gratitude to all those who encouraged me and helped me during my study.


It gives me immense pleasure, to express my unfeigned and sincere thanks and gratitude to my supervisor Shri. R.K.VERMA, Chief Area Manager, for his valuable guidance sustained, encouraged and constructive critic at every stage of work, without which it would have never been accomplished. I am thankful to the staff members of Indian Oil Corporation Ltd. Marketing Terminal, who gave me an opportunity to spend these two months in their organization and enrich my knowledge. I also extend my heartiest thanks to all the faculty members of Birla Institute of Technology, Noida for gracing me with the knowledge that I could use in the completion of this training. I am also very thankful to all my respondents who took time out of their busy schedules and helped me in carrying out this project.



I hereby declare that this project report entitled “ALTERNATIVE FUELS OF LPG such as PNG” is prepared by me towards the partial fulfillment of the requirement of the Bachelor of Business Administration course of the Birla Institute of Technology, Noida under the guidance of Miss. MEENAKSHI SHARMA. I also declare that this project report has not been submitted at any time to any other university.








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CHAPTERS Chapter 2

Objectives & Reseach Methodology 2.1 Objectives of the Study 2.2 Research Design 2.3 Sampling Framework 26 27 27 29 39

Chapter 3 Chapter 4 Chapter 5

Data Analysis and Interpretations Findings of the study Conclusion 5.1 Conclusion 5.2 Limitations of the Study

40 41

BIBLIOGRAPHY ANNEXURE- 1. Questionnaire 2. List of respondents 3. Other Supporting Materials


Introduction to IOCL
“A major diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.”

Indian Oil Corporation is an Indian public-sector petroleum company. It is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 125th position. It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for a 48% share in the petroleum products market, 34% share in refining capacity and 71% downstream sector pipelines capacity in India. The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL). As the flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people every day through a countrywide network of about 35,600 sales points. They are backed for supplies by 167 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 18,643. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,764 markets through a network of about 5,095 Indane distributors. At Indian Oil, customers always get the first priority. New initiatives are launched round-theyear for the convenience of the various customer segments.


It is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10. As a leading public sector enterprise of India, Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers.










• To achieve international standards of excellence in all aspects of energy and diversified
business with focus on customer delight through value of products and services, and cost reduction.

• To maximize creation of wealth, value and satisfaction for the stakeholders. • To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage. • To provide technology and services through sustained Research and Development. • To foster a culture of participation and innovation for employee growth and contribution. • To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. • To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, IndianOil topped The Hindu Businessline's "India's Most Valuable Brands" list.

However, the value of the IndianOil brand is not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of exploration & production, refining, transportation & marketing, petrochemicals & natural gas and downstream marketing operations abroad. IndianOil is a national brand owned by over a billion Indians and that is a priceless value.
Due to innovative initiatives, strong brand communications and sales promotion campaigns conducted during the year, Indian Oil's branded fuels - XTRAPREMIUM petrol and XTRAMILE diesel - maintained their firm leadership status, with a market share of 48.6% and 59.6% respectively among branded fuels in the market. XTRAPREMIUM and XTRAMILE are now available at 6,446 and 9,256 retail outlets of Indian Oil respectively.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to our customers, our stringent checks are built into operating systems, at every level ensuring the trust of over a billion Indians over the last four decades.

IOCL Products
Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as India’s dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Our

continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management. Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to our customers, our stringent checks are built into operating systems, at every level ensuring the trust of over a billion Indians over the last four decades. The Retail Brand template of IOC consists of XtraCare (Urban), Swagat (Highway) and Kisan Seva Kendra’s (Rural). These brands are widely recognized as pioneering brands in the petroleum retail segment. Indian Oil’s leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Auto gas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card, Indian Oil Aviation and XtraRewards cash customer loyalty programme.

Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market. Known for its cutting-edge technology and high-quality products, SERVO backed by Indian Oil's pioneering R&D, extensive blending and distribution network, sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive, industrial and marine segments. In the retailing segment, besides Indian Oil petrol stations, SERVO range of lubricants is available through a network of SERVOXpress stations, bazaar outlets and thousands of auto spare parts shops across the country. The SERVO range includes over 500 lubricants and 1500 formulations encompassing literally every lubricant requirement. The SERVOXpress is a one-stop shop for quick, easy and convenient auto care, providing customers with a refreshing experience. The SERVOXpress stations have facilities for oil

change, tyre/battery checkups, A/C service, vacuum cleaning, perfuming, and upholstery cleaning, polishing and lamination installation too.

Indane is today one of the largest packed-LPG brands in the world. Indian Oil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean, efficient and safe cooking fuel. LPG also led to a substantial

improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. It is today a fuel synonymous with safety, reliability and convenience. Indian Oil’s Indane LPG gas is used in 53 million homes as cooking fuel and commands over48% market share in India.

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international and domestic airlines. Between one sunrise and the next, Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. Indian Oil Aviation services have a market share of 65% with a network of 101 Aviation Fuel Stations (AFS) meets complete aviation fuel requirement of the Defense services.

AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS.

XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation multifunctional additives known as friction busters that prevents combustion chamber deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, and better pick up, faster acceleration, enhanced engine cleanliness and lower emissions.

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms of superior mileage, lower maintenance costs and improved engine protection. A growing section of customers who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a

large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for low maintenance costs.

The XTRAPOWER Fleet Card program is a complete smart card-based fleet management solution for fleet operators and Corporate for cashless purchase of fuel & lubes from designated retail outlets of Indian Oil through flexible pre-paid and credit facilities The fleet card program also offers an exciting rewards program and unique benefits like personal accident insurance cover and vehicle tracking facilities. In just under two years of its launch, Indian Oil’s XTRAPOWER Fleet Card has emerged as the largest fleet card in the country with the widest retail outlet coverage.

Kerosene is distillate fractions of crude oil in the boiling range of 150-250°C. They are treated mainly for reducing aromatic content to increase their smoke point (height of a smokeless flame) and hydro fining to reduce sulphur content and to improve odour, colour & burning qualities (char value). Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is less volatile than gasoline, increase in its evaporation rate in domestic burners is achieved by increasing surface area of the oil to be burned and by increasing its temperature. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers.

IOCL Services

Indian Oil provides a wide range of marketing services and consultancy in fuel handling, distribution, storage and fuel/lube technical services. With a formidable bank of technical and engineering talent, Indian Oil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. Our project teams have independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst others. Indian Oil’s fuel management system to bulk customers offer customized

solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. Indian Oil’s supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence. The wide network of services offered by Indian Oil, Marketing Division is well maintained, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps; Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business (non-fuel alliances) and SERVO technical services.

IOCL Brands:


SWOT Analysis for IOCL

External environment Opportunity:
The IOCL has much opportunity in the present market conditions. This is because the petroleum products have become a need for everyone and still contains a lot of scope for customization. The various opportunities are listed below. • Since the company has the maximum number of outlets and also the maximum number of refineries in India, it can very easily go for extension at any point of time, and can introduce any new products, which will get support from its huge market network. • The company can make the buying process easier for the customers, by implying many more schemes in the range of XTRAPOWER Fleet Card AND XTRAREWARD. • The company can think over the issue to build its own pipelines, so that it will be an independent player and it will also support its aviation fuel supply. • Company has a great scope in E&P. It is already involved in E&P but only in a very limited scale.

Since the company is the market leader in the field, so have maximum threats from the other players and many other issues. The lists of threats are given below. • The foreign players with more advanced technology are the biggest threat for the company. • The crude oil supply is also a big issue in front of the company, because the company cannot fix its price and so, some time had operated in loss also.It is the biggest problem because the maximum part of their crude is been imported. • In future the market will welcome more private players, which will eat up its market share. • If the Govt. Policies allow the private players to set their own price, the private player can seriously harm the market share of IOCL.

Internal environment

Strengths: • IOC controls 10 refineries, by virtue of which it has a total share of around 40% of India’s
overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries of IOC. • 58% of IOC’s refining capacity is located in the Northern and Western regions, which are high demand and high growth areas • Although its refineries are located the interior of the country and not near the major ports IOC has a very strong distribution network by virtue of having a share of 48% in the country’s product pipelines. The total capacity of these product pipelines is 49.79 MMT. • IOC also acquired management control of the marketing company IBP, thereby strengthening its position in these activities. It also has a dominant share in all segments in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG distributors, and 6492 kerosene/LDO dealers. • By virtue of entering into extensive joint venture agreements, and of its own initiative as well, the company has a presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration, petrochemicals, gas, training and consultancy, etc. • The company has already entered overseas markets such as Sri Lanka, Maldives, and Oman and is presently considering entering Turkey through a JV. The company is in talks with Caliak of Turkey to set up a 10 million TPA grass root refinery with an investment of $2 billion and establish retail business. IOC is also weighing the possibility of entering Indonesia.IOC has also started exploring the overseas markets for increasing its scope of operations. Its interests include downstream activities in Sri Lanka, Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc; among others.

The company is the market leader in the industry, but still it had many weaknesses such as: • The major weakness for the company is the R&D. The company starts working on it.

• The petrochemical product development technology is another weakness for the company. • The technological drawback, as compared to some major foreign player is another
weakness for the company


Liquefied petroleum gas is one of the most common and an alternative fuels used in the world today. Liquefied petroleum gas is also called as LPG, LP Gas, or Auto gas. The gas is a mixture of hydrocarbon gases used as a fuel for various purposes. This is mainly used in heating appliances and vehicles and is replacing chlorofluorocarbons as an aerosol propellant. It is also used as a refrigerant mainly to reduce damage to the ozone layer. LP gas is a mainstay for cooking and heating in some areas of India and rural areas of the United States and the other parts of the world. LPG is also used as alternate for petroleum and Diesel. The main reason behind this being the soaring in the prices of the oil, LPG has emerged as much preferred choice. LPG is a fossil fuel and can be refined from oil and natural gas. LPG is basically a hydrocarbon with propane and butane as main constituent. Properties of LPG  LPG is twice as heavy as air and half as heavy as water.  LPG is colourless and odourless; hence an odorant is used to detect leaks.  LPG can be compressed at a ratio of 1:250, which enables it to be marked in portable containers in liquid form.  LPG is safe fuel and ignites only within the specified LPG- Air ratio of 2% to 9%.  A high calorific value of 11,900 Kcal/Kg results in high efficiency heat output.

LPG As Cooking Fuel LPG is a gas at normal temperature and pressure. The gas is compressed into a liquid by application of moderate pressure. This action of applying pressure reduces the volume by approximately 240 times. When the pressure is released, which is done by opening the cylinder valve, the liquid immediately becomes gas. The appliances that run on LPG are highly efficient. LPG is very clean gas and is also quick, convenient and safe. It is cheaper than most other fuels except perhaps kerosene but it does greatly outweigh the marginal extra cost. It is delivered by gas agency directly at home.


LPG has numerous advantages when compared to the other fuels available. With its high energy output, instantly available heat, flexibility in use and environment friendliness has become an important alternative energy source. It offers the following advantages:  Clean Burning  No soot, burners have a longer life - so maintenance is low  No spillage as it vaporises at atmospheric temperature and pressure.  Effects of corrosion are greatly reduced  Instantly controllable flame temperature  Avoids scaling and decarborising of parts  Environmentally friendly fuel, with minimal sulphur content and sulphur- free emissions  Very high efficiency with direct firing system  Instant heat for faster warm-up and cool-down  Free form peak time premium rates, unlike electricity. One rate round the clock  Can be used for a variety of applications



There is some argument as to when the first crude oil pipeline was constructed. However, some say pipeline transport was pioneered by Vladimir Shukhov and the Branobel company in the late 19th century. Others say oil pipelines originated when the Oil Transport Association first constructed a 2-inch (51 mm) wrought iron pipeline over a 6-mile (9.7 km) track from an oil field in Pennsylvania to a railroad station in Oil Creek, in the 1860s. Pipelines are generally the most economical way to transport large quantities of oil, refined oil products or natural gas over land. Compared to shipping by railroad, they have lower cost per unit and higher capacity. Although pipelines can be built under the sea, that process is economically and technically demanding, so the majority of oil at sea is transported by tanker ships. Oil pipelines are made from steel or plastic tubes with inner diameter typically from 4 to 48 inches (100 to 1,200 mm). Most pipelines are buried at a typical depth of about 3 to 6 feet (0.91 to 1.8 m). The oil is kept in motion by pump stations along the pipeline, and usually flows at speed of about 1 to 6 meters per second (3.3 to 20 ft/s). Multi-product pipelines are used to transport two or more different products in sequence in the same pipeline. Usually in multi-product pipelines there is no physical separation between the different products. Some mixing of adjacent products occurs, producing interface. At the receiving facilities this interface is usually absorbed in one of the product based on pre-calculated absorption rates. Crude oil contains varying amounts of wax, or paraffin, and in colder climates wax buildup may occur within a pipeline. Often these pipelines are inspected and cleaned using pipeline inspection gauges pigs, also known as scrapers or Go-devils. Smart pigs are used to detect anomalies in the pipe such as dents and holes in the coating. These devices are launched from pig-launcher stations and travel through the pipeline to be received at any other station down-stream, cleaning wax deposits and material that may have accumulated inside the line . For natural gas, pipelines are constructed of carbon steel and varying in size from 2 to 60 inches (51 to 1,500 mm) in diameter, depending on the type of pipeline. The gas is pressurized by compressor stations and is odorless unless mixed with a mercaptan odorant where required by a regulating authority. PNG is mainly methane – CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured from the oil / gas wells and transported through a network of pipelines across the country.



Knowing fully well that Piped Natural Gas is the obvious choice for us to make, wouldn't it be apt if we called PNG Positively Natural Gas!!

PNG has several distinctions to its credit- of being a pollution-free fuel, easily accessible minus storage troubles, and being avail at very competitive rates.

When you choose PNG, you are making a wise decision. Why not enhance your comfort and improve your lifestyle for the years come? Experience the versatility and performance of this reliable energy source. With PNG you don't need to make any choices, its characteristics make it the best option for domestic and commercial purposes. •

Uninterrupted su The source of PNG supply in Delhi is the famous Hazira-Bijaipur-Jagdishpur (HBJ) pipeline of GAIL (India) Lim PNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problem storing gas in cylinders.

Unmatched convenience The domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and ag Then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exe unnecessary. PNG also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it b underweight, at the time of delivery. Moreover, the user is spared the inconvenience of connecting and disconnecting LPG cylinder when out of gas. Precious space, occupied by LPG cylinders is also saved.

Safety The combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% o air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world. Sa

Natural gas is lighter than air. Therefore, in case of a leakage, it just rises and disperses into thin air given adeq ventilation. But LPG being heavier will settle at the bottom near the floor sur

A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer since PNG installation inside premises contains only a limited quantity of natural gas at low pressure i.e. 21 millibar (m

On leakage, LPG expands 250 times, which is not the case with PNG. Supply in PNG can be switched off thro appliance valve (inside the kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply.

Billing The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consu pays the PNG bill only once in four mo

Moreover, there are no minimum consumption charges ie, if there hasn’t been any consumption, there shall not be any

The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed a premises. The bill is delivered at the user’s doorstep. List of collection centers/drop boxes

Customer sup Round-the-clock customer support is assured through 24 hrs toll free number 1800112535, 64543592, 64733166 64563655 backed by control rooms, which are manned by engineers and trained technicians. Thus complaints, if any 24

promptly redressed.

A versatile Natural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and comme applications, as a cooking fuel, for water heating, space heating, air conditioning, etc.

Environment frie Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in plac other more polluting energy sources. Its combustion results in virtually no atmospheric emissions of sulphurdioxide (S and far lower emissions of carbon monoxide (CO), reactive hydrocarbons and carbon dioxide, than combustion of o fossil f In fact, when natural gas burns completely, it gives out carbon dioxide and water vapour. These are the very compon that we exhale!

No daily liasio The consumer is spared the task of liasioning with oil companies and co-ordinating with them for ensuring the daily su of fuel, because PNG is supplied directly through p The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too a the meter reading.

No spillage and pilfe In case of fuels like HSD and LDO, there are considerable chances of spillage and pilferage. In case of PNG these lo are invariably done away with, for PNG is supplied through pipes.

Billing No up-front paym The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is according to the meter. The commercial consumer pays on a monthly basis. Moreover, there are no minimum consump charges, ie, if there hasn’t been any consumption, there shall not be any bill.The user pays the gas consumption cha based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the u doorstep. Lower maintenance With PNG, soot or ash accumulation and greasy spillages are absent from your appliance. Maintenance costs are, driven down.


For any research study there has to be some objectives which can highlight the purpose of doing the research work. The m 25

objectives are:

To study the advantages and disadvantages of PNG.

 To study the market penetration of PNG.  To find the consumer preference of PNG.  To study the comparative analysis of PNG and LPG.  To find out the impact on profitability through shift of customers from LPG to PNG.



Desk Research: In this stage we focused on secondary data analysis and looked for
the data on PNG.

Questionnaire Survey: We prepared a questionnaire and got it filled by our
respondents who are using PNG. They are the residents of NOIDA, GREATER NOIDA and GHAZIABAD.

 Exploratory experimental Research.

The research is primarily both exploratory in nature. The sources of information are both primary & secondary. A well-structural questionnaire was prepared and the survey was conducted to understand the existing users of PNG in NOIDA, GREATER NOIDA and GHAZIABAD.


Convenience Sampling

Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. They comprise of the residents of NOIDA ,GREATTER NOIDA and GHAZIABAD. who are using PNG at their homes. Sampling Size: 200 customers have been taken as sampling size.


This research was conducted in two phases. In the first phase the study was based on the results of a wide survey, that is, personal interview with the aid of printed questionnaires. The second phase of study was conducted by Secondary Research using Google and other Databases. The internet basically serves the purpose for the same. Secondary data: Different published and unpublished (only online) materials basically articles from the internet have been focused on. We have studied and gathered information from a number of authentic sources like: · Books · Newspapers · Magazines · Internet Primary Data: For our research we have used only the questionnaire survey method to conduct our analysis. Questionnaires are of three categories such as structured, un-structured, disguised and undisguised. But we have used structured questionnaire for our survey. Structured question is the one which has specified number of responses. Such questions restricted the interviewee from giving his own answers and required them to choose from among the alternatives given. This saves a considerable amount of time as the respondents is quick enough to choose from among the options given to him.

Data Analysis:
The following graphs and table are basically a representation of the respondents in the form of questionnaire being filled by them. The number and percentage wise distribution is shown below and also separate analysis of the graphs has been shown therewith.



Q1.Showing the response of respondents regarding the preference for a particular Oil Marketing Company for fuel purchase.

Sl. No. 1. 2.

Response YES NO

No. of respondents 174 26

Percentage (%) 87% 13%

INTERPRETATION: From the above analysis it is found that 87% of the respondents prefer fuel from a particular oil company whereas 13% respondents purchase fuel from different companies.


2. Showing the response of respondents regarding the preference of INDIAN OIL in comparison to others.

Sl. No.
1. 2 3. 4.


No. of respondents
98 66 24 12

Percentage (%)
49% 33% 12% 6%

According to the survey conducted, it has been observed that 49% of the respondents prefer INDIAN OIL for the purpose of purchasing fuel which is followed by BPCL(66%) and HPCL(24%). Even 6% of the respondents prefer ither companies like ONGC,Reliance Petroleum Limited etc.


3. Showing the response of respondents about the convenience of PNG as compared to LPG. Sl. No. 1. 2. 3. Response AGREE DISAGREE NEUTRAL No. of respondents 124 54 22 Percentage(%) 62% 27% 11%

According to survey conducted 62% of the respondents agree that PNG is more convenient than LPG as they do not find risky and saves their time in booking a cylinder. Whereas 27% of the respondents say that LPG is more convenient and 11% respondents find both LPG and PNG convenient.


4. Showing the response of respondents that whether PNG is more economical than LPG.

Sl. No. 1. 2.


No. of respondents 148 52

Percentage(%) 74% 26%

From the above analysis it has been observed that 74% of the respondents say that it is more economical to use PNG as it is less costlier than LPG whereas 26% of the respondents say that LPG is more economical for them.


5. Showing the response of respondents that whether they are satisfied with the working of PNG. Sl. No. 1. 2. 3. Response SATISFIED NEUTRAL DISSATISFIED No. of respondents 152 42 6 Percentage(%) 76% 21% 3%

The above analysis shows that 76% of the respondents are satisfied with the working of PNG and 3% of the respondents do not agree with it. Whereas 21% of the respondents said that they do not find any difference between the two.

6. Showing the response of respondents regarding the problem of leakage.

Sl. No. 1. 2.

Response PNG LPG

No. of respondents 12 188

Percentge(%) 6% 94%

According to the survey conducted 94% of the respondents say that the problem of leakage mostly occurs with LPG due to several reasons like defective cylinder which creates risk and also injures people.

7. Showing the response of respondents that whether PNG reduces the chances of accidents. Sl. No. Response No. of responents Percentage(%)

1. 2. 3.


174 22 4

87% 11% 2%

The above analysis shows that 87% of the respondents agree that PNG reduces the chances of accidents as compared to LPG whereas 11% of the respondents do not agree with the same.

8. Showing the response of respondents that whether PNG reduces the tedious task of booking an LPG cylinder. Sl. No. 1. Response AGREE No. of respondents 178 Percentage(%) 89%





According to the above analysis 89% of the respondents say that PNG reduces the tedious task of booking a cylinder whereas 11% of the respondents do not find booking a cylinder as a tedious task.

9. Showing the response of respondents that whether there exists any kind of pilferage as far as billing is concerned. Sl. No. 1. 2. Response AGREE DISAGREE No. of respondents 108 92 Percentage(%) 54% 46%

The above analysis shows that 54% of the respondents say that there exists problem in the case of PNG while billing is done whereas 46% of the respondents say that there does not exist any kind of pilferage as far as billing is concerned.

10. Showing the response of respondents regarding uninterrupted supply of gas without inconvenience.

Sl. No. 1. 2.

Response YES NO

No. of respondents 136 64

Percentage(%) 68% 32%


According to the above analysis 68% of the respondents say that there is an uninterrupted supply of gas when they use PNG whereas 32% do not agree with the same.

On the basis of Primary data analysis: I surveyed 200 respondents as in total and on the basis of the questionnaires being filled by them, I can say that: • • • • • Around 87% of the respondents prefer a particular Oil Marketing Company for purchasing fuel. Amongst all the competitors BPCL is the biggest threat for IOCL followed by HPCL. It has been observed that majority of the respondents (62%) find PNG more convenient than LPG. Around 74% of the respondents find PNG more economical as compared to LPG. More than 3/4th of the people that is 76% people are satisfied with the working of PNG.

• •
• • •

Maximum respondents i.e. 94% people say that the problem of leakage occurs mostly in the case of LPG. 87% of the people surveyed agreed that PNG reduces the chances of accidents. Around 89% people feel that PNG reduces the tedious task of booking an LPG cylinder. Almost half of the people disagree that there exists any kind of pilferage as far as billing is concerned. 68% of the respondents said that there is uninterrupted supply of gas without inconvenience in case of PNG.


While surveying we encountered with some problems like-

A survey should involve a larger sample size otherwise the findings of the survey cannot be generalized.

Collecting Primary Data with the help of Questionnaire increases the time and cost.

• •

Many of the respondents were not willing to fill the questionnaire. Some people were not willing to respond and few of them who

responded were in hurry hence the active participation was lacking. Due to which we faced difficulties in collecting information’s regarding our questionnaire.

Another problem which we faced was that people were hesitant to give information about their views freely.


Thus,on the basis of the research done it can be concluded that PNG is rapidlly growing everywhere and the existing users are found very much satisfied with its working as they find it more convenient and less costlier than LPG. It saves time and energy of booking cylinder and also reduces the chances of accidents. The another benefit of PNG is that it does not have leakage problem and also provides uninterrupted supply..


• Kothari ,C.R. ,”Research Methodology “ Sultan Chand Publication, New Delhi ,2004. • T.N. Chhabra,”Marketing Management”

Philip Kotler, “Marketing Management -Kevin Lane Keller.

Web Pages:
• • • •

http://www.iocl.com/aboutus.aspx http://www.lpg.in/index.html http://en.wikipedia.org/wiki/Pipeline_transport http://www.iglonline.net/BenefitsPNG.aspx http://www.iglonline.net/AboutPNG.aspx


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