The Indian government has increased domestic LPG production by 36% over the last two weeks to meet the rising demand for cooking gas. However, the overall availability of LPG remains a significant concern, according to a statement from the Ministry of Petroleum and Natural Gas. Sujata Sharma, the Joint Secretary in the ministry, highlighted the necessity to encourage consumers of both domestic and commercial LPG to transition to piped natural gas (PNG).

Incentives for Piped Gas Connections

City gas distribution companies are implementing various incentive schemes to promote the adoption of PNG. Notable examples include Indraprastha Gas in Delhi-NCR, which offers free PNG gas worth Rs 500 to domestic users. In Mumbai, Mahanagar Gas has waived the Rs 500 registration charge and security deposits for residential PNG connections, while Bharat Petroleum has eliminated security deposits for all commercial PNG users.

Impact of Global Supply Issues

Despite having a relatively stable supply of crude oil, officials acknowledge that LPG supply challenges are evident, primarily due to the closure of the Strait of Hormuz. This strategic waterway is crucial for the transportation of energy resources from West Asia to India.

The country relies heavily on imports for its energy, sourcing approximately 90% of its crude oil, 50% of its natural gas, and 60% of its LPG from international markets. A significant portion of these imports, specifically over 50% of crude, 30% of natural gas, and up to 90% of LPG, originates from West Asian countries traversing Hormuz.

Efforts to Secure LPG Supply

In contrast to crude oil, LPG lacks a strategic reserve, prompting officials to seek alternative sources for procurement. While India has been able to mitigate some crude supply challenges by purchasing oil from nations like Russia, the supply of LPG to industrial users has been curtailed. Additionally, LPG allocation to commercial entities, including hotels and restaurants, has been restricted to prioritize availability for domestic consumers.

Ongoing Supply Monitoring and Enforcement Actions

While Petroleum Minister Hardeep Singh Puri noted that the nation is diversifying its LPG supply sources, including options from the United States, Norway, Canada, and Russia, specific information regarding recent cargo acquisitions has not been disclosed. Sujata Sharma stated that there have been no reports of stock shortages at LPG dealerships and that measures are underway to combat hoarding and black market activities. Furthermore, online booking for LPG has increased from 84% to 90%, while delivery authentication has expanded from 53% to 72%, aimed at preventing cylinder diversion at the distribution level.

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