India’s overall LPG coverage crosses 99%, say OMCs

  • For PMUY beneficiaries, a surge of 23.2 percent in LPG consumption was noted in the initial quarter of this fiscal

  • Compared year-on-year, the overall domestic LPG sales have registered a handsome growth of 10.3 percent during the current fiscal till February-end

New Delhi: The penetration of Liquefied Petroleum Gas (LPG) in India has improved from 55 percent in 2014 to more than 99 percent as on March 10, said state-run Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) in an official statement released late night on March 10. “Driven by the vigorous thrust of the government on making clean energy accessible to all Indians, LPG has emerged as the preferred kitchen partner for almost every Indian,” said the statement. Apart from general improvement, LPG consumption has also registered a rise amongst Pradhan Mantri Ujjwala Yojana (PMUY) customers. A surge of 23.2 percent in LPG consumption was noted in the initial quarter of this fiscal, which was attributed to the three free LPG refills given to the PMUY beneficiaries, said the statement.

‘Rs 9,670 crore transferred to PMUY beneficiaries for 3 free refills during pandemic’

“Taking the vision of Prime Minister Narendra Modi forward to make energy accessible, available and affordable for even the poorest of the poor, the oil and gas industry, under the aegis of MoP&NG, has provided 8 crore LPG connections to PMUY beneficiaries at pan-India level with government expenditure of Rs 12,800 crore. Moreover, to alleviate the problems faced by the marginalised during the Covid-19 pandemic, PMUY beneficiaries were provided with three free LPG refills. A total of Rs 9,670 crore was transferred to the bank accounts of the beneficiaries directly,” said Indian Oil and BPCL.

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7.3% growth in overall LPG consumption in Dec-Feb 2020-21 period

It is notable that the improvement in the overall LPG consumption has continued for the three-month period between December 2020 and February and has registered a growth of 7.3 percent for all domestic LPG customers (PMUY + non-PMUY). LPG consumption amongst PMUY customers registered a growth of 19.5 percent, from 8,45,310 MT in the corresponding period in the last fiscal to 10,10,054 MT in the current fiscal for the said three-month period. Compared year-on-year, the overall domestic LPG sales have registered a handsome growth of 10.3 percent during the current fiscal till February-end, said the statement.

99% LPG penetration in India

“We have near universal LPG penetration in India with coverage of more than 99 percent. This is a sign of positive behavioural change towards better health and cleaner environment. This widespread acceptance of LPG as the preferred kitchen fuel of almost every Indian showcases the surging popularity of LPG as the primary kitchen fuel as compared to other traditional fuels such as firewood. Research has shown that those exposed to air pollution are more susceptible to COVID-19, therefore doing everything to maintain LPG use among the poor is actually a direct health measure,” the statement said.

While the upfront per kg cost of firewood is cheaper, LPG is a more economical fuel in the long run when costs such as total volume of fuel consumed and handling costs are factored in. Even at the current rates, LPG is cheaper than firewood/ other traditional fuels in many states, largely on account of its overall heating efficiency.

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