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New Delhi: The Central government on Wednesday offered to raise commercial LPG supplies to states that speed up piped natural gas (PNG) connections, as the LPG crunch entered its third week. Officials urged users to switch to city gas networks to ease pressure on cylinder stocks. Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said the government will increase commercial LPG supplies by 10 percent for states that accelerate PNG rollout.
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“LPG users should shift to PNG wherever there is a city gas distribution (CGD) network nearby,” she told reporters at an inter-ministerial press briefing on Wednesday, adding that the ministry has written to states offering extra commercial LPG if they speed up approvals and reduce charges for pipeline works. Sharma urged state and local authorities to act. “Onus is on states and UTs to take this reform forward and expedite approvals,” she said.
Officials said the West Asia war has blocked access to LPG cargoes stuck in the Strait of Hormuz. Due to the supply crunch, the government has prioritised LPG supply to domestic consumers first. Supply to commercial establishments was initially halted and later restored to about 20 percent. “Situation, however, continues to be worrisome,” Sharma said, while stressing that there has been no dry-out at any retail outlet.
The ministry’s outreach lists a menu of incentives linked to higher commercial allocations. Oil Secretary Neeraj Mittal told state governments that CGD operators had complained of high right-of-use and lease charges that had “dampened the CGD investment climate.” He warned, “It is known that excessive taxes on a fledgling business could have a strangulating effect on other consequential economic activities of that business.”
Mittal outlined the additional LPG allocations on offer: 1 percentage point for states that form panels for CGD approvals and grievance redressal; an added 2 percentage points for states that grant deemed permissions for old applications and allow new applications to be cleared within 24 hours; 3 percentage points for states that introduce a ‘dig and restore’ scheme allowing CGD firms to undertake road restoration themselves; and 4 percentage points where annual rental/lease charges for laying and operating CGD networks are reduced to zero. He noted that India has issued only 1.6 crore domestic piped cooking gas connections so far against a commitment of 12.63 crore, and argued that “If this gap can be bridged through ease and cost of doing business reforms, one can easily generate economic activity and earn higher corresponding revenue from a larger pie.”
Sharma said the ministry has proposed specific administrative relaxations — deemed approvals for pending pipeline permissions, 24-hour clearance for new applications, waiver of restoration and permission charges, relaxed working hours and seasons, and appointment of nodal officers — to speed up PNG installations.
Sharma said online bookings have risen to about 93 percent and consumers continue visiting dealerships; she appealed for patience. “LPG consumers are requested to wait after doing online booking. Cylinders will be delivered to their homes,” she said. “There is no need for panic booking or going to LPG distributors.”
To curb hoarding and diversion, the government has intensified enforcement and asked states to set distribution priorities; 15 states and union territories have issued LPG distribution guidelines so far. To provide short-term relief, the centre has allocated 48,000 kilolitres of additional kerosene for cooking and related needs, and 12 states have utilised that quota.
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The supply squeeze has forced restaurants to drop gas-intensive dishes and has hit industries such as brick and tile manufacturing, ceramics and glass kilns. Essential services — crematoria, laundries and hospital kitchens — and small vendors and community kitchens are operating under strain as supplies tighten.
Sharma underlined that India remains self-sufficient in petrol and diesel and that aviation turbine fuel stocks are adequate. Asked about jet fuel, she said there are enough supplies.
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