India Boosts Commercial LPG Allocation to 70% to Ensure Supply Stability

The Indian government increased commercial LPG allocation to 70% to ensure market stability amid West Asia crisis disruptions. Joint Secretary Sujata Sharma confirmed sufficient supply and warned against panic buying. Over 165,600 tons of commercial LPG were sold in April, with auto LPG sales also surging. Enforcement agencies inspected 1,800 locations, penalizing 310 distributors and suspending 71.

Key Points: Commercial LPG Allocation Increased to 70%: India

  • Commercial LPG allocation increased to 70% to maintain market stability
  • Panic buying reported at distributors despite sufficient supply
  • Over 165,600 tons of commercial LPG sold in April, up from March
  • Enforcement actions taken against 310 distributors and 71 suspended
3 min read

Commercial LPG allocation increased to 70% to ensure supply stability: Petroleum Ministry

India raises commercial LPG allocation to 70% amid West Asia crisis. Petroleum Ministry assures sufficient supply and urges against panic buying.

"The allocation of commercial LPG has also been increased to 70%. There is still panic buying at many LPG distributors. We have a sufficient supply of LPG. - Sujata Sharma"

New Delhi, April 27

The Central government increased the allocation of commercial Liquefied Petroleum Gas to 70 per cent to maintain market stability as energy imports faced disruptions from the West Asia crisis.

The decision aimed to protect domestic consumers and the transport sector while addressing recent instances of panic buying at various distribution points across the country.

"The allocation of commercial LPG has also been increased to 70%. There is still panic buying at many LPG distributors. We have a sufficient supply of LPG. And because of this, there is no dry out on any distributor. 93% of the supply is being done through the authentication code of the LPG cylinder," said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) in the Ministry of Petroleum & Natural Gas, addressing an inter-ministerial briefing on Monday.

In the commercial sector, in the month of April, more than 165,600 tons of commercial LPG have been sold, up from approximately 1,29,500 tons in March.

Auto LPG sales also experienced a sharp increase, reaching 386 tons per day in April compared to 177 tons per day during the first two months of the year.

In the small cylinder category, Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs) sold over 19.5 lakh 5-kg cylinders since April 1. This coincided with the establishment of 9,080 awareness camps where 146,000 cylinders were sold.

Regarding natural gas, the government has gasified more than 5,52,000 Piped Natural Gas (PNG) connections since March, with 6,21,000 new consumers registered for the network. To date, 42,600 PNG consumers have surrendered their LPG connections.

Sharma stated that the government ensured total protection for domestic LPG, PNG, and Compressed Natural Gas (CNG) transport. She confirmed that supply lines remained functional despite the external pressures currently affecting energy imports.

"As you know, due to the West Asia crisis, our energy imports have been affected. But the Indian government has been trying to ensure that the domestic LPG, PNG consumers and CNG transport can be 100% protected and the supply can be ensured. And this has been done," Sharma said.

The Ministry reported that the use of authentication codes served to stop the diversion of cylinders. On Sunday, distributors continued operations to facilitate deliveries and prevent backlogs.

"In the case of petrol pumps, all the supplies are normal. But panic buying is being seen in some places. Due to this, some problems are being immediately sorted out. I again request everyone that the supply of petrol and diesel is also normal. Please avoid panic buying and rumours," Sharma stated.

To curb irregularities and manage artificial demand, enforcement agencies conducted inspections and raids at 1,800 locations on Sunday. These actions resulted in penalties for 310 distributors and the suspension of 71 LPG distributors.

"Through all of you, I would like to request everyone not to believe in rumours. And act as per the need of LPG, petrol and diesel," she said.

- ANI

Share this article:

Reader Comments

P
Priya S
Finally, some proactive planning! The 70% allocation for commercial LPG is crucial for hotels, restaurants, and small businesses that rely heavily on it. But I hope the government also keeps an eye on domestic users—we don't want shortages at home. Still, the awareness camps are a nice touch. 👍
V
Vikram M
Panic buying is such an Indian habit! 🤦‍♂️ The ministry is right—supply is normal, but people get scared and hoard. I appreciate the raids on 1,800 locations and suspending 71 distributors. That will send a strong message. Auto LPG sales doubling is interesting; more people switching to cleaner fuel?
A
Ananya R
It's good to see the government being transparent about supply challenges. The 5,52,000 new PNG connections since March is impressive—more people are moving to piped gas, which is safer and cheaper. But why are 42,600 consumers surrendering LPG? Is it purely economic or something else? 🤔
R
Rohit P
The authentication code system seems effective in stopping diversion—good innovation. But I'm still worried about small businesses that can't stock up in bulk. The 70% allocation is helpful, but they need consistent supply at fair prices. Hope the ministry follows through on the 'no dry out' promise. 🛢️
K
Kavya N
West Asia crisis affecting our energy imports—this is a real wake-up call for India to diversify its energy sources. Meanwhile, the ministry's response is decent: increasing commercial allocation and enforcing rules. But I wish they'd address the transport sector more directly; CNG auto drivers are struggling with queues.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50