Govt urges shift to PNG to ease LPG supply pressure

To ease pressure on LPG supplies due to the near-shutting of the Strait of Hormuz because of the ongoing war between the US, Israel, and Iran, the Government on Monday urged commercial consumers to shift to piped natural gas (PNG) wherever available to ease pressure on LPG distribution, adding domestic cooking gas supplies remain stable.  Meanwhile, LPG refill bookings have declined to about pre-war levels of 50-55 lakh on March 15 from about 77 lakh on Saturday and a peak of 88.8 lakh on March 13, she said, but hastened to add that it remains to be seen if this was a permanent trend or a one-off decline primarily due to March 15 being a Sunday.

Addressing a media briefing, Sujata Sharma, Joint Secretary (Marketing and Oil Refinery) in the Ministry of Petroleum and Natural Gas, said commercial establishments using LPG can switch to PNG by contacting their respective City Gas Distribution (CGD) companies through email, customer portals, letters or call centres, with company details available on PNG service websites.

Sharma said several companies have announced incentives to encourage the transition to cleaner fuel. Indraprastha Gas Ltd (IGL), for instance, is offering Rs 500 worth of free gas to domestic consumers who obtain a PNG connection before March 31 and start purchasing gas, while Mumbai retailer Mahanagar Gas Ltd has announced incentives, including waiver of Rs 500 registration charge for domestic household consumers and Rs 1-5 lakh security deposit for commercial users. Similar promotional measures have also been introduced by GAIL and Bharat Petroleum Corporation Ltd (BPCL). The Petroleum and Natural Gas Regulatory Board (PNGRB) has also advised CGD companies to deploy additional resources and accelerate the rollout of PNG connections.

Despite concerns over LPG availability, authorities maintained that domestic consumers continue to receive uninterrupted supply and no “dry-outs” have been reported at LPG distributorships. “The share of online LPG bookings has risen to about 90 per cent from 87 per cent, with the Government continuing to promise the use of digital modes of bookings rather than queuing up at LPG dealerships for panic purchases,” Sharma said.

The use of Delivery Authentication Codes (DAC) has also improved significantly, rising from 53 per cent earlier to 72 per cent. State Governments have started distributing commercial LPG cylinders based on allocations issued by the Centre, with priority given to essential sectors such as hospitals and educational institutions.

India imports about 88 per cent of its crude oil, 50 per cent of its natural gas and 60 per cent of its LPG needs. More than half of India’s crude imports, about 30 per cent of gas and 85-90 per cent of LPG imports came from West Asian countries, such as Saudi Arabia, Qatar and the UAE, through the Strait of Hormuz.

Rajesh Kumar Sinha, Special Secretary, Ministry of Ports, Shipping, and Waterways, confirmed that the LPG carrier Shivalik, carrying over 40,000 metric tonnes of LPG, is expected to reach Mundra Port in Gujarat around 5 pm on Monday after safely crossing the Strait of Hormuz earlier this week.

Authorities said documentation and priority berthing arrangements have been completed in advance to ensure the quick discharge of cargo. Another vessel, Nandadevi, which also crossed the Strait of Hormuz safely, is expected to arrive at Kandla Port on Tuesday.

“Indian-flag vessel ‘Jag Laadki’, which sailed from the UAE on 14th of March, is carrying about 81,000 tonnes of Murban crude oil and is safely en route to India. The vessel and all Indian seafarers on board are safe. They’ll be reaching tomorrow at Mundra Port,” he added.

Sinha said that 22 Indian-flagged vessels with 611 Indian seafarers remain in the Persian Gulf west of the Strait of Hormuz and are being closely monitored. The Directorate General of Shipping has also facilitated the safe repatriation of 286 Indian seafarers from the Gulf region so far.