Govt Ramps Up 5-Kg LPG Supply & PNG Expansion To Ease Fuel Pressure

(MENAFN- KNN India) New Delhi, Apr 13 (KNN) India has stepped up the supply of smaller LPG cylinders and accelerated piped natural gas (PNG) connections to manage fuel availability amid disruptions linked to the West Asia conflict.

According to an official statement, over 13 lakh 5-kg LPG cylinders have been sold since March 23, with daily sales crossing 1 lakh units, as authorities seek to improve access for migrant workers and low-income households, PTI reported.

Shift Towards Smaller Cylinders and PNG

The government has increased the availability of market-priced 5-kg LPG cylinders to offset shortages for consumers without subsidised connections. Daily sales have risen sharply from about 77,000 units in February to over 1 lakh in recent weeks.

At the same time, more than 4.24 lakh new PNG connections have been activated since March, with over 30,000 consumers surrendering LPG connections as part of the transition.

Supply Pressures from West Asia

The ongoing disruptions in West Asia have affected India's energy supplies, particularly LPG. The country depends heavily on the region for fuel imports, including crude oil, natural gas, and up to 85–90 per cent of LPG.

While crude oil supplies have been partly offset through alternative sourcing, LPG availability has been impacted due to supply chain disruptions through key routes such as the Strait of Hormuz.

Priority Allocation and Commercial Impact

To ensure household supply, the government has prioritised domestic LPG distribution, resulting in reduced availability for commercial users such as hotels and restaurants.

Commercial LPG supplies have been restored to around 70 per cent of pre-crisis levels through targeted allocations and increased supply efforts.

State-run oil marketing companies-Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited-are coordinating with state governments to streamline distribution.

Gas Supply and Infrastructure Push

The government has ensured full natural gas supply for household PNG and CNG transport segments, while increasing supply to fertiliser plants to about 95 per cent of recent consumption levels through additional LNG imports.

City gas distributors, including Indraprastha Gas Limited, Mahanagar Gas Limited, and GAIL Gas Limited, have been directed to prioritise PNG connections, especially for commercial users.

Stable Domestic Supply and Policy Measures

Despite global disruptions, domestic LPG supply remains stable, with no reported stockouts and over 52 lakh cylinders delivered on April 11.

Digital systems now handle most transactions, with online bookings accounting for 98 per cent of demand.

Refineries are operating at high capacity, supported by adequate crude inventories, while domestic LPG production has been increased.

To shield consumers from rising global oil prices, the government has reduced excise duty on petrol and diesel by Rs 10 per litre and raised export duties on diesel and aviation turbine fuel to maintain domestic availability.

(KNN Bureau)

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