LPG crisis: Commercial cylinder distribution resumes in 29 States

As panic buying of cooking gas continues, the Ministry of Petroleum and Natural Gas said on Saturday that commercial LPG cylinder distribution has been resumed for some industries in various States, adding that no stockouts have been reported so far at retail outlets across the country.

The ministry claimed that 62.5 lakh cylinders were delivered in the last 24 hours, while authorities have stepped up raids and surprise inspections across the country to curb hoarding and black-marketing amid heightened pressure on cooking gas supplies.However, LPG refill bookings have surged sharply due to panic buying by consumers. As per data shared by the ministry, the number of bookings was about 75.7 lakh on Thursday, and it has now increased to around 88.8 lakh on Friday.

In a media briefing on the current fuel situation, Sujata Sharma, Joint Secretary (Marketing and Oil Refinery), Ministry of Petroleum and Natural Gas, said the government has decided that commercial consumers will also get LPG. “In some States, commercial cylinders are being directly supplied to industries to meet their operational requirements,” she said. This is likely to provide relief to commercial establishments and industries, especially the restaurant and hospitality sector. “There are no dry-out reports from any retail outlets. Our refineries are operating at full capacity, and sufficient petrol and diesel are available.

 Based on our requirements, we produce adequate petrol and diesel domestically and do not need to import,” she said. She further stated that despite the prevailing geopolitical situation, no fuel shortage has been reported.

“The number of bookings was about 75.7 lakh on Thursday, and it has now increased to around 88 lakh on Saturday. This is nothing but panic booking,” the official said, urging consumers to book cylinders only when required. Pre-war, daily bookings totalled around 55 lakh and oil marketing companies delivered 50 lakh cylinders per day. While the cylinder deliveries remain the same, bookings have surged,” Sharma said.

There are 101469 retail outlets, and 25605 LPG distributors in the country. The Government says around 50 lakh domestic LPG cylinders are delivered on a daily basis. There are 33.37 crore LPG consumers, while PNG consumers stood at 1.5 crore.

“The first day we informed you about a 10 per cent increase in domestic production, then 25 per cent, then 28 per cent, and today the increase has reached 31 per cent,” she said.

As part of supply management measures, the Commission for Air Quality Management (CAQM) has allowed the temporary use of biomass and RDF pellets in place of natural gas and LPG by industries, hotels, restaurants and other establishments in the National Capital Region, including Delhi, for a period of one month.

Consumers have been urged to use digital tools such as SMS, WhatsApp and mobile apps of OMCs for refill bookings instead of visiting LPG distributorships. “There is no need to stand in queues at distributorships for booking or cylinder delivery. OMCs deliver cylinders to consumers’ homes and will continue to do so,” she said.

State Governments and district administrations have been asked to closely monitor the LPG supply situation and ensure smooth distribution, she said, adding that several chief ministers and senior officials have already held review meetings in States such as Haryana, Goa, Telangana and Andhra Pradesh.

Authorities have also intensified enforcement to curb hoarding and black-marketing, with states conducting raids and surprise inspections in coordination with Oil Marketing Companies (OMCs).

The Ministry issued an advisory assuring citizens that petrol and diesel remain adequately available across the country. It also urged people to avoid unsafe practices such as storing petrol or diesel in loose containers.

“It has come to notice that at one retail outlet in Tamil Nadu, petrol was being taken in a loose container, which is unsafe and not advisable,” the ministry said. The ministry added that strict action has already been taken in the matter.

India imports 88 per cent of its crude oil needs, 50 per cent of its natural gas requirement and 60 per cent of its LPG demand. Before the US and Israel attacked Iran on February 28, and Tehran retaliated by hitting US bases in neighbouring countries as well as Israel, more than half of the crude oil requirement came from the Middle East countries, 30 per cent of gas from the region and 85-90 per cent of LPG. The war has led to an effective blockage of the Strait of Hormuz, which is the usual sea transit for energy from the Gulf countries. While India has managed to source crude oil from other countries, including Russia, the hit on gas supply has led to cuts for industrial users and to commercial establishments such as hotels and restaurants.

Delhi govt caps commercial LPG supply at 20% of average consumption

 As cooking gas becomes harder to procure, hotels are being forced to switch to firewood stoves and reduce food items in their menus. The Delhi Government issued an order on Saturday, capping the daily regulated distribution of commercial LPG cylinders at roughly 20 per cent of the city's average consumption. In another order, the Ministry of Petroleum and Natural Gas (MoPNG) on Saturday said consumers with PNG connections will no longer be allowed to retain, obtain or refill domestic LPG cylinders under an amended supply order.The directive follows instructions from the MoPNG and intends to ensure that essential services continue to receive fuel amid the escalating military conflict between Iran and the US.