From June 1, the retail price of a 19 kg commercial LPG cylinder in Delhi has risen by Rs 42, bringing the new cost to Rs 3,113.50. This price adjustment not only affects Delhi but also other major cities. In Kolkata, for instance, the price has surged by Rs 53.50, now totalling Rs 3,255.50 per cylinder. Additionally, a 5 kg Free Trade LPG cylinder now costs Rs 821.50 in Delhi after a Rs 11 increase.

Government’s Strategies on Fuel Security

The recent price revision aligns with the government’s ongoing initiatives to bolster fuel security across the nation and to ensure adequate reserves of petroleum products, including cooking gas. Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated during an inter-ministerial briefing that the government is amassing strategic reserves. Oil marketing companies have been instructed to maintain a minimum 30-day LPG reserve.

Sharma further mentioned that India currently possesses adequate stocks of petrol, diesel, LPG, and natural gas, while refineries operate at optimal capacity. LPG production has reached a record high of nearly 90 DMT per day, and no disruptions in supply from LPG distributorships have been indicated. The government remains committed to managing supply levels to meet rising demand.

However, there has been a noted increase in sales at various retail outlets, attributed partially to rising agricultural demand and bulk purchases. Overall fuel sales have exhibited a growth of more than 30 per cent, with 14 districts reporting petrol sales doubling. To counteract potential hoarding and diversion, enforcement agencies have heightened their inspections.

Regulatory Measures and Inspection Activities

In response to the increased sales activity, authorities have intensified their inspections on LPG distribution. Over the last four days, officials have conducted approximately 6,500 raids, leading to five FIRs and two arrests related to the distribution of LPG. In addition, there have been 900 inspections at fuel retail outlets within a span of two days, resulting in the confiscation of 417 litres of petrol and 75,715 litres of diesel. This has led to the filing of 12 FIRs and 15 arrests.

On the current availability of LPG, Sharma noted that the demand stands at around 72 thousand metric tonnes daily, while domestic refineries are producing between 50 and 52 thousand metric tonnes. The backlog for LPG has been reduced to 4.5 days, which indicates improved management of the supply chain. These measures have been crucial for maintaining a stable supply amidst the fluctuations in demand.

The government’s regulatory actions aim to ensure effective distribution and prevent irregularities in fuel supply. Continuous monitoring and enforcement are essential to adapting to changing market conditions and ensuring that the supply meets the rising demands of consumers and industries alike.

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