India Increases 5-kg LPG Supply and Expands PNG Rollout in Response to Middle East Crisis
India is taking significant measures to ensure fuel availability amid disruptions caused by ongoing conflicts in the Middle East. The government has ramped up the supply of smaller 5-kg LPG cylinders and accelerated the rollout of piped natural gas (PNG) connections. Since March, over 13 lakh 5-kg LPG cylinders have been sold, with daily sales surpassing 1 lakh units. This initiative aims to support migrant workers and low-income consumers while maintaining stable domestic supplies.
Increased LPG Cylinder Sales
Since the onset of the crisis, India has witnessed a surge in the sale of 5-kg LPG cylinders. More than 13 lakh units have been sold since March 23, with daily sales now exceeding 1 lakh. This increase is part of the government’s strategy to enhance access for migrant workers and low-income households. Prior to the crisis, daily sales averaged around 77,000 cylinders in February. The recent spike in sales reflects the government’s commitment to ensuring that vulnerable populations have access to essential cooking fuel.
The government has prioritized LPG supply for domestic households, reducing allocations to commercial users such as hotels and restaurants. To address the needs of those without subsidized LPG connections, the supply of market-priced 5-kg cylinders has been increased. This approach aims to balance the needs of various consumer segments while ensuring that households remain adequately supplied.
Expansion of Piped Natural Gas Connections
In addition to boosting LPG cylinder sales, India has also accelerated the rollout of piped natural gas (PNG) connections. Since March, over 4.24 lakh new PNG connections have been activated, with more than 30,000 consumers opting to surrender their LPG connections in favor of this alternative. The government is focusing on transitioning consumers to PNG as part of a broader strategy to diversify fuel sources and reduce reliance on LPG.
City gas distributors, including Indraprastha Gas Ltd and Mahanagar Gas Ltd, have been instructed to prioritize PNG connections for commercial users. This shift is part of a larger effort to manage fuel demand effectively and ensure that households have consistent access to natural gas. The government is also ensuring full supply for household PNG and CNG transport, while increasing supplies to fertilizer plants to meet consumption needs.
Stable Domestic Fuel Supply Amid Global Disruptions
Despite the ongoing conflict in the Middle East, which has disrupted global energy supplies, India has managed to maintain stable domestic LPG supplies. The government has reported no stockouts, with over 52 lakh cylinders delivered on April 11. Online bookings now account for approximately 98 percent of demand, and delivery authentication systems cover 93 percent of transactions to prevent diversion.
Commercial LPG availability has been restored to about 70 percent of pre-crisis levels, thanks to targeted allocations and increased supply measures. State-run oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, are working closely with state governments to streamline distribution and ensure that consumers have access to necessary fuel supplies.
Government Measures to Mitigate Rising Fuel Prices
To shield consumers from the impact of rising global oil prices, the Indian government has implemented several measures. These include cutting excise duties on petrol and diesel by Rs 10 per liter while raising export levies on diesel and aviation turbine fuel to ensure domestic availability. Refineries are operating at high utilization rates, with adequate crude inventories and increased domestic LPG production.
The government’s proactive approach aims to stabilize fuel availability and prices during a challenging period marked by international disruptions. By prioritizing household needs and expanding alternative fuel options, India is working to ensure that its citizens have access to essential energy resources.
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