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Government Addresses LPG Supply Concerns Amid Speculations

The Indian government has dismissed rumors regarding the reduction of LPG cylinder sizes amid ongoing supply challenges. Officials emphasize the importance of stabilizing supply and combating illegal trade. As part of their strategy, the government is exploring alternative sources, including potential partnerships with the US and Argentina. Additionally, 50% of commercial LPG will be allocated to state governments for various sectors. To ensure a steady supply, logistics are being prioritized at key ports. Recent ship movements indicate successful navigation through critical shipping routes, highlighting efforts to maintain LPG availability.
 

Clarification on LPG Cylinder Reports


Recent discussions have emerged suggesting that oil marketing firms might limit deliveries to 10 kg of LPG from the standard 14.2-kg cylinders. This strategy is intended to extend limited supplies and ensure that more households have access to cooking gas amid the current supply challenges. However, the Union Government has refuted these claims, labeling them as "highly speculative." During an Inter-Ministerial Briefing on West Asia developments, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum & Natural Gas, urged the public to ignore these rumors, stressing that the priority is on stabilizing supply and combating illegal trade. She stated, "Reports about converting 14.2 kg domestic LPG cylinders to 10 kg are unfounded. Avoid believing in speculation." Previously, it was noted that a 14.2 kg cylinder typically lasts an average household 35-40 days, while a 10-kg refill could last nearly a month.


Exploring Alternative LPG Sources

In light of the ongoing LPG cylinder shortage, the government is reportedly looking towards the United States for expedited supplies. Interestingly, Argentina has emerged as a potential partner in this endeavor.


Furthermore, the Joint Secretary revealed that 50% of commercial LPG will now be allocated to state governments and union territories. She explained, "Regarding commercial LPG, about 50% of the volume will be available for state governments and union territories. The Government of India has urged state governments to include restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, subsidized canteens, and community kitchens in this allocation." So far, around 20 states and union territories have received commercial LPG, with approximately 15,800 tonnes already uplifted.


Prioritizing LPG Logistics

To address the domestic situation, Indian authorities are prioritizing LPG logistics. Ports like Kandla have been directed to give preference to LPG carriers, following instructions from the Ministry of Ports, Shipping and Waterways to ensure a steady supply.


Recent ship-tracking data indicates that two India-flagged gas carriers, Jag Vasant and Pine Gas, have successfully navigated the strategically important Strait of Hormuz. Both vessels, classified as very large gas carriers, were observed traveling along a route near the Iranian coastline, a path increasingly utilized by ships that have received clearance from Iran. Their movement follows a similar route taken by earlier vessels that successfully crossed this conflict-affected corridor.