Tuesday, 02 January 2024 12:17 GMT

Govt Bars Piped Gas Users From Buying Cooking Gas Cylinders


(MENAFN- Live Mint) New Delhi: The government has barred households with piped natural gas (PNG) connections from refilling liquefied petroleum gas (LPG) cylinders with immediate effect, as India looks to preserve cooking gas supplies amid disruptions linked to the West Asia war. Consumers shifting to PNG must surrender or get a transfer voucher within 30 days for an LPG connection in the future in any location not connected with PNG, according to a gazettte notification issued on Monday.

The move follows government's directive in March, asking PNG consumers to give up LPG connections within three months. LPG supplies remain under pressure amid continued blockade of the Strait of Hormuz that has choked energy imports from West Asia.

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"A person or household having a domestic liquefied petroleum gas (LPG) connection and subsequently having obtained a piped natural gas (PNG) connection shall not forthwith take a refill of domestic liquefied petroleum gas (LPG) cylinder and shall also, within thirty days from the date of obtaining a PNG connection, either apply for termination of the LPG connection or take a transfer voucher for a future LPG connection in a non-PNG area," said the notification.

The oil and natural gas ministry also said that consumers who have transitioned to PNG may obtain a transfer voucher to restore their erstwhile connection if they happen to re-locate in an area where piped gas infrastructure is not available.

“This amendment provides significant relief and flexibility to consumers who may subsequently shift to areas where PNG infrastructure may not be feasible,” said the ministry. "The provision is particularly beneficial for transferable employees, migrant households, tenants, students, and/or families shifting to non-PNG areas."

Also Read | Govt weighs LPG stock mandate as West Asia war hits supply

India's annual consumption of LPG is about 33 million tonnes. The West Asia war and the blockade of the Strait of Hormuz have severely hit India's LPG supplies, as about 90% of its cooking gas imports earlier came from West Asia. Now, the government has diversified to other fuel markets, including the US, Canada and Norway.

The petroleum ministry maintained that LPG supply remains affected by the prevailing geopolitical situation in West Asia. It, however, noted that supply of LPG to domestic households has been prioritized and no dryouts were reported at LPG distributorships,

“During the last four days, about 1.72 crore LPG cylinders were delivered against bookings of around 1.66 crore LPG cylinders,” said Sujata Sharma, joint secretary in the petroleum and natural gas ministry.

Also Read | BPCL taps US LPG spot market for first time amid Gulf supply disruption

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