India boosts 5-kg LPG supply, accelerates PNG rollout amid West Asia disruption

India has ramped up the supply of smaller 5-kg LPG cylinders and accelerated the rollout of piped natural gas (PNG) connections as it manages fuel availability amid disruptions triggered by the West Asia conflict.

More than 13 lakh 5-kg free trade LPG cylinders have been sold since March 23, with daily sales rising above 100,000 units, as authorities expand access for migrant workers and low-income consumers, according to an official statement.

At the same time, over 424,000 new PNG connections have been activated since March, with more than 30,000 consumers surrendering LPG connections as part of the transition.

The six-week-long war in West Asia has disrupted global energy supply. India relied on import of half of its crude oil, 40 per cent of its gas and 85-90 per cent of LPG from the region was also impacted.

While it has managed to make up for the shortfall in crude oil by sourcing from other regions, LPG supplies have been impacted.

The Government has prioritised LPG supply to domestic households at the cost of cuts in supplies to commercial users like hotels and restaurants. To make up for the shortfall for those who do not have subsidised cooking gas LPG connections, it has ramped up supply of market-priced 5 kg cylinders.

As against the sale of about 77,000 5 kg cylinders in pre-crisis February, daily sales have topped over 1 lakh in the last two-three weeks.

The statement said domestic LPG supplies remain stable overall, with no reported stockouts and over 52 lakh cylinders delivered on April 11.

Online bookings account for about 98 per cent of demand, while delivery authentication systems now cover 93 per cent of transactions to curb diversion.

Commercial LPG availability has been restored to about 70 per cent of pre-crisis levels, supported by targeted allocations and increased supply measures. State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are coordinating with state Governments to streamline distribution.

The Government has prioritised natural gas allocation, ensuring full supply for household PNG and CNG transport, while increasing supplies to fertiliser plants to about 95 per cent of recent average consumption, aided by additional LNG imports.

City gas distributors, including Indraprastha Gas Ltd, Mahanagar Gas Ltd, and GAIL Gas Ltd, have been directed to prioritise PNG connections for commercial users, as part of a broader push to shift demand away from LPG.

Refineries are operating at high utilisation with adequate crude inventories, and domestic LPG production has been stepped up. To shield consumers from rising global oil prices, the Government has cut excise duty on petrol and diesel by Rs 10 per litre, while raising export levies on diesel and aviation turbine fuel to ensure domestic availability, the statement added.