New Delhi: With the dismantling of the administered price mechanism in oil sector, Dealer Selection Boards for LPG distribution will stand scrapped from this evening (May 9) and oil companies will hereafter select dealers, Petroleum Minister Ram Naik said on May 9.

"Government has decided to scrap Dealer Selection Boards from this evening. The responsibility of selecting dealers will now onwards wrest with oil companies," Naik told the Lok Sabha during Question Hour.

He said interviews by these Boards, slated for May 9, were on but the process will be carried out by companies from May 10.

Stating the total number of gas connections in the country stood at over 6.35 crore, Naik said gas connections were primarily in urban areas.

"Only 7.5 per cent of the people in Bihar, mostly in urban areas, have gas connections whereas it is almost 50 per cent in Haryana," he said, adding "the government is aiming to have LPG agencies for each block" and over 1,700 new agents had already been appointed.

Replying to a question on LPG dealership, Naik said oil PSUs had set up 7486 distributorships across the country till April 2002 and demarcated the trading areas for each distributor at the time of allotment.

Government has also advised oil companies that old distributors do not operate either directly or through extension counters in the trading area of newly commissioned distributors, he added.

PTI