India Increases LPG Booking Gaps Amid Supply Concerns

Government Adjusts LPG Booking Policies

In response to potential gas supply issues linked to the ongoing conflict in Iran, India has announced an extension of the minimum waiting period for LPG cylinder bookings. The new policy increases the booking gap to 45 days in rural regions, up from 25 days, and to 25 days in urban areas, previously set at 21 days. This announcement was made by Hardeep Singh Puri during a session in the Lok Sabha. He stated, "A 25-day minimum booking gap has been introduced as a demand management measure in urban areas and 45 days in rural and durgam kshetra areas." This decision comes amid significant global energy disruptions due to attacks near the Strait of Hormuz, a critical oil transit route.

Despite these changes, Puri assured that the delivery timeline for domestic LPG cylinders remains stable at 2.5 days, consistent with pre-crisis levels. He emphasized that hospitals and educational institutions will continue to receive uninterrupted LPG supplies, regardless of overall demand fluctuations.

Panic Booking and Hoarding Concerns

The minister highlighted that panic buying and hoarding are prevalent among distributors and retailers, although he clarified that the situation is not due to an actual LPG shortage but rather consumer anxiety. He noted that the surge in bookings reflects a distortion in demand rather than a failure in production or supply. To enhance monitoring, the government plans to expand the delivery authentication code system from 50% to 90% of consumers. This system requires consumers to confirm receipt of their cylinders via a one-time code sent to their registered mobile, effectively preventing undocumented diversions.

Resumption of Commercial LPG Supply

Puri also revealed that the supply of commercial LPG cylinders will resume starting Thursday. He stated, "In a significant decision, 20% of the average monthly commercial LPG requirement will be allocated from today by OMCs, in coordination with the State Governments to prevent hoarding or black marketing." Additionally, the government is exploring alternative fuel options to alleviate pressure on LPG supplies, including the distribution of kerosene through retail outlets and the Public Distribution System (PDS), as well as making fuel oil available for industrial and commercial users. He assured Parliament that domestic LPG supply remains secure, with production having increased by 28% over the past five days to meet demand during this crisis.