Despite repeated assurances from the government about requisite liquefied petroleum gas (LPG) stock availability for meeting requirement of households, cylinder bookings have shot up further, reflecting a spurt in panic booking. According to a senior Petroleum Ministry official, LPG bookings by household consumers jumped nearly 60% on Friday over the average daily booking levels for the April-February period of the current financial year. On Thursday, it was over 35% higher than the 11-month average of daily bookings.
The government again appealed to consumers to avoid panic and book cylinders only when required given the constrained and difficult LPG supply situation, which has arisen due to the massive disruption in vessel movements through the chokepoint of the Strait of Hormuz. It also said that action against hoarding and black marketing of LPG has also been intensified all over the country.
As per data shared by Petroleum Ministry Joint Secretary Sujata Sharma in a media briefing on Saturday, average LPG bookings by households—which averaged at 55.7 lakh cylinders a day in April-February—surged to 88.8 lakh on Friday; Thursday’s figure was 75.7 lakh. Sharma said that despite the constraints in LPG imports, the government is prioritising supplies to households over commercial and industrial consumers, even as the government is closely monitoring the supply situation in view of West Asia conflict that has hit India’s energy imports, with LPG supplies impacted the most due to the crisis.
“The situation is a matter of concern for all of us, but we are ensuring that household consumers do not face inconvenience. Domestic consumers have been prioritised, and LPG cylinder supply is being ensured for them,” Sharma said Saturday, adding that none of the 25,000-odd LPG distributorships across the country have reported a “dry-out”—running out of stock—yet. She has also been saying that public sector oil marketing companies (OMCs) are maintaining their earlier average of over 50 lakh cylinder deliveries per day.
The effective halt in maritime traffic through the crucial chokepoint of the Strait of Hormuz due to the West Asia conflict has significantly impacted India’s LPG imports. The country depends on imports to meet around 60% of its LPG requirement, and 90% of the LPG imports come from West Asia through the Strait. This effectively means that roughly 55% of India’s LPG consumption volumes are currently unavailable.
Given the crisis, the government has prioritised LPG supplies to households over commercial and industrial consumers, ordered refiners to maximise LPG production, and directed them to divert propane, butane, and other streams from petrochemical manufacturing to LPG production. Sharma said that these measures have led to an increase of 31% in domestic LPG production vis-à-vis pre-West Asia conflict levels, and a further increase is likely over the next few days. The government has also increased waiting times between cylinder bookings by households from 21 days to 25 days in urban areas and 45 days in rural areas to check hoarding behaviour and manage demand and supply.
Sharma informed reporters that commercial LPG cylinder distribution has begun in 29 states and Union Territories. After initially deciding to divert all LPG supplies for consumption by households, which led to massive shortage of the fuel for commercial consumers like restaurants, hotels, and some other units, the government on Thursday announced that it will allocate for commercial use 20% of the average monthly commercial LPG requirement in coordination with state governments. The government has also activated alternative fuel streams like kerosene, fuel oil, biomass, and even coal for commercial consumers to help them cover their LPG shortfall. Moreover, state-owned gas major GAIL has asked city gas distributors to provide piped natural gas (PNG) connections to commercial LPG consumers wherever feasible.
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Regarding action against hoarding and black marketing of LPG, authorities have stepped up raids and surprise checks, Sharma said. State governments and local administrations have intensified enforcement, with states conducting raids and surprise inspections jointly with the OMCs in various parts of the country. The OMCs have also activated their inspection teams, conducting around 1,300 surprise inspections at LPG distributorships and retail outlets in one day. Sharma added that specific action against cylinder theft and hoarding have already led to recoveries and arrests in various states.
“In Uttar Pradesh, enforcement teams inspected 1,483 locations; 24 FIRs were registered (4 against LPG distributors and 20 against individuals), 6 persons were arrested and prosecution initiated against 19 individuals,” the government said in a release. Raids have also been conducted in states like Andhra Pradesh, Karnataka, Odisha, and Bihar. It added that state governments and district administrations have been asked to closely monitor the LPG supply situation and ensure smooth cylinder distribution. Chief ministers and senior officials have already held review meetings in various states like Uttar Pradesh, Rajasthan, Haryana, Goa, Telangana, and Andhra Pradesh.
“Citizens are advised not to panic. The Government is committed to maintaining LPG availability for households and essential sectors. LPG cylinders can be booked easily through digital platforms such as IVRS calls, SMS, WhatsApp and mobile applications of the Oil Marketing Companies. Consumers are advised to book cylinders from home and avoid visiting LPG distributors unnecessarily. Citizens are requested to avoid panic bookings and use digital modes for booking to prevent crowding at LPG agencies,” the government said.
