Reports of a potential LPG shortage have triggered panic among autorickshaw drivers and residents in Raichur and its nearby districts. Long queues have formed at refuelling stations as drivers wait for hours to fill their tanks, exacerbated by the recent closure of several private outlets. This situation has been further complicated by disruptions in global supply chains linked to the ongoing crisis in West Asia.

State officials and major Public Sector Undertakings (PSUs) like IndianOil have attempted to reassure citizens regarding the availability of LPG by stating that there are sufficient stocks. However, the gap between government-set prices and inflated private rates has led to protests from drivers struggling to maintain their livelihoods.

Government Response and Measures

Karnataka’s Food and Civil Supplies Minister, K.H. Muniyappa, has claimed that there is no tangible shortage of LPG for domestic or public transport needs. In response to the mounting concerns, the government has instructed IndianOil to increase daily sales, which currently stand at approximately 59.53 Metric Tonnes. Furthermore, authorities have issued warnings against potential black marketing and unauthorized price hikes, while also forming monitoring committees at the district level to investigate hoarding activities.

On a national level, the Government of India has provided assurances regarding the availability of petrol, diesel, LPG, and PNG throughout the nation. IndianOil also clarified that its supply of Free Trade Liquefied Petroleum Gas (FTL) cylinders remains uninterrupted for migrant labourers. The company assured that measures are in place to maintain the steady supply chain.

Hindustan Petroleum Corporation reported delivering a record number of 1,410,000 LPG cylinders from its 55 bottling plants, in addition to thousands of Free Trade LPG cylinders in various sizes. The proactive actions of these corporations aim to mitigate any potential disruption in availability.

Challenges in Bengaluru and Broader Impact

In March, Karnataka Chief Minister Siddaramaiah had reached out to Union Petroleum Minister Hardeep Singh Puri to highlight a critical shortage of commercial LPG in Bengaluru. The city is reportedly receiving only 1,000 cylinders daily, while the demand stands at around 50,000, leading to severe challenges for businesses, including hotels that are forced to cease operations due to the lack of supply.

CM Siddaramaiah has stressed that despite governmental efforts to prioritize supply for essential services, the existing imbalance of demand versus supply presents a dire situation that jeopardises local livelihoods. He has appealed for immediate assistance from the central government to enhance the availability of both commercial and auto LPG.

As tensions persist in West Asia, India continues its diplomatic engagement with global partners to ensure energy security and the safety of its citizens in the Gulf region. The Indian government has announced a financial relief package of Rs 497 crores to support exporters affected by these disruptions, indicating a commitment to stabilising its economic framework amidst external challenges.

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