Commercial LPG sale starts in 29 states, UTs; raids stepped up to check black-marketing

New Delhi, Mar 14: Commercial LPG cylinder distribution has begun in 29 states and Union Territories, while authorities have stepped up raids and surprise inspections across the country to curb hoarding and black-marketing amid heightened pressure on cooking gas supplies, a senior oil ministry official said on Saturday.

Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said panic booking continues to rise despite the fact that there are enough stocks available to meet domestic household requirements of cooking gas LPG.

India, she said, has adequate crude oil inventories, and domestic refineries are operating at full capacity, ensuring sufficient availability of petrol and diesel across the country.

“There are no dry-out reports from any retail outlets. Our refineries are operating at full capacity, and sufficient petrol and diesel are available. Based on our requirements, we produce adequate petrol and diesel domestically and do not need to import,” she said.

Sharma said domestic LPG supply is being prioritised even as the government continues to closely monitor the situation amid the prevailing geopolitical developments that hampered energy supplies from the Gulf countries. India imports 88 per cent of its crude oil needs, 50 per cent of its natural gas requirement and 60 per cent of its LPG demand.

Before the US and Israel attacked Iran on February 28, and Tehran retaliated by hitting US bases in neighbouring countries as well as Israel, more than half of the crude oil requirement came from the Middle East countries, 30 per cent of gas from the region and 85-90 per cent of LPG.

The war has led to an effective blockage of the Strait of Hormuz, which is the usual sea transit for energy from the Gulf countries. While India has managed to source crude oil from other countries, including Russia, the hit on gas supply has led to cuts for industrial users and to commercial establishments such as hotels and restaurants.

“The situation is a matter of concern for all of us, but we are ensuring that household consumers do not face inconvenience. Domestic consumers have been prioritized, and LPG cylinder supply is being ensured for them,” she said.

However, LPG refill bookings have surged sharply due to panic buying by consumers.

“Yesterday, the number of bookings was about 75 lakh, and it has now increased to around 88 lakh. This is nothing but panic booking,” the official said, urging consumers to book cylinders only when required.

Pre-war, daily bookings totalled around 55 lakh and oil marketing companies delivered 50 lakh cylinders per day. While the cylinder deliveries remain the same, bookings have surged.

She also clarified that booking restrictions are linked to the time gap between two deliveries. “In urban areas, there is a minimum gap of 25 days between the last delivery and the next booking, while in rural areas the gap is 45 days. If consumers try to book before this window, the booking will not take place,” she said.

To ease supply pressure, the government has ramped up domestic LPG production. “The first day we informed you about a 10 per cent increase in domestic production, then 25 per cent, then 28 per cent, and today the increase has reached 31 per cent,” she said.

The official added that state-run GAIL has met city gas distribution (CGD) operators and asked them to provide piped natural gas (PNG) connections to commercial consumers facing LPG supply constraints.

Consumers who can easily shift from LPG to PNG – both domestic and commercial – are being encouraged, she said.