India has boosted its supply of smaller 5kg LPG cylinders and accelerated the launch of pipelined natural gas connections to manage fuel availability amid disruptions caused by the conflict in the Middle East, with domestic supplies remaining stable, according to an official statement.More than 13 lakh 5kg free trade LPG cylinders have been sold since March 23, with daily sales crossing 1 lakh units, as authorities work to expand access for migrant workers and low-income consumers, PTI reported.
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The government enhances the allocation of 5 kg LPG to migrants as supply pressure increases
Meanwhile, more than 4.24 lakh new PNG connections have been activated since March, with more than 30 lakh consumers waiving LPG connections as part of the transition.The six-week-old war in West Asia has disrupted global energy supplies.
India relied on importing half of its crude oil needs, 40 percent of its gas, and 85-90 percent of its liquefied petroleum gas from the region, all of which were affected.While the country has been able to make up for the shortfall in crude oil through sources from other regions, LPG supplies have been affected.The government has prioritized LPG supplies to local households, reducing supplies to commercial users such as hotels and restaurants. To bridge the gap for those who do not have subsidized LPG connections, it has increased the supply of 5 kg cylinders at market prices.
Compared to daily sales of around 77,000 5kg cylinders in February before the crisis, volumes have exceeded more than 1,000,000 per day in the past two or three weeks.Domestic LPG supplies remain generally stable, with no stock-outs reported and more than 52,000 cylinders delivered on April 11, the statement said.Online reservations account for about 98 percent of demand, while delivery authentication systems now cover 93 percent of transactions to reduce diversion.Commercial LPG availability has been restored to around 70 percent of pre-crisis levels, supported by targeted allocations and increased supply measures. The state-run oil marketing companies – Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited – are coordinating with state governments to streamline the distribution process.The government has prioritized natural gas allocation, ensuring full supply of PNG household transport and CNG, with supplies to fertilizer plants increasing to around 95% of recent average consumption, supported by additional LNG imports.The city’s gas distributors, including Indraprastha Gas Ltd, Mahanagar Gas Ltd and GAIL Gas Ltd, have been directed to prioritize PNG connections to commercial users, as part of a broader drive to shift demand away from LPG.Refineries are operating at high utilization rates with sufficient crude oil reserves, and domestic liquefied petroleum gas production has been increased. To protect consumers from rising global oil prices, the government has reduced customs duty on petrol and diesel by Rs 10 per litre, while increasing export duty on diesel and aviation turbine fuel to ensure its domestic availability, the statement added.
