Government Boosts LPG Supply Amid Ongoing Shortage
Central Government's Initiative to Address LPG Shortage
New Delhi, Mar 18: The central government has announced plans to enhance the supply of commercial LPG as the ongoing shortage extends into its third week. On Wednesday, officials indicated that states that expedite the implementation of piped gas networks would receive increased supplies.
During a press briefing, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, noted that while LPG supplies are limited, the distribution of piped natural gas (PNG) to households and industries remains steady.
Sharma encouraged LPG users to transition to PNG where city gas networks are accessible, emphasizing that the ministry has urged states to streamline the approval process for pipeline installations.
In exchange for faster approvals, the government is offering a 10% increase in commercial LPG supplies if states expedite pending applications, approve new requests within 24 hours, lower rental fees, and implement dig-and-restore initiatives.
She stated, "The responsibility lies with states and Union Territories to advance these reforms and hasten approvals." The government is prepared to increase commercial LPG supplies by 30% for states that accelerate the rollout of piped natural gas.
Sharma mentioned that commercial LPG stocks have been allocated to states, which are tasked with determining their usage priorities. To date, 15 states and Union Territories have established LPG distribution guidelines.
Additionally, states have been allocated 48,000 kilolitres of extra kerosene to meet cooking and other requirements, with 12 states already utilizing this additional supply.
Oil Secretary Neeraj Mittal communicated with all state governments and Union Territories, highlighting complaints from city gas operators regarding high charges for right of use (ROU) for laying pipelines and digging, which have negatively impacted the investment climate for city gas distribution (CGD).
States that implement a “Dig and Restore Scheme” for CGD operators will receive an extra 3% of LPG, allowing them to manage road restoration independently and avoid restoration fees.
Furthermore, states that eliminate annual rental or lease charges for the CGD network will be granted an additional 4% of commercial LPG, according to Mittal.
States can provide proof of these reforms to qualify for the additional LPG supplies.
Regarding the current LPG supply situation, Sharma assured that there are no shortages across the country, although the situation remains concerning due to blocked imports.
Online bookings have surged to 93%, yet consumers still face long wait times at dealerships.
"We urge LPG consumers to wait for their online bookings, as cylinders will be delivered to their homes. There is no need for panic or visiting LPG distributors," she advised.
Due to the conflict in West Asia, which has restricted India's access to nearly 60% of its LPG, the government has prioritized supplies for domestic kitchens.
While supplies to commercial entities like hotels were initially reduced, they are now receiving 20% of their usual requirements.
Sharma confirmed that India remains self-sufficient in petrol and diesel, with no fuel shortages reported at retail outlets.