LPG Production Up By 28 Pc In 5 Days, Cylinder Delivery Time Remains 2.5 Days: Hardeep Puri

(MENAFN- IANS) New Delhi, March 12 (IANS) LPG production has been increased by 28 per cent through refinery directives in the last five days, and further procurement is actively underway, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said in the Parliament on Thursday.

Stressing that the government’s foremost priority is that the kitchens of India’s more than 33 crore families, especially the poor and the underprivileged, do not face any shortage, Puri said domestic supply is fully protected, and the delivery cycle is unchanged.

“The standard time from booking to delivery for domestic LPG cylinders remains 2.5 days, unchanged from pre-crisis norms. Hospitals and educational institutions have been placed on uninterrupted priority supply; their access to LPG is fully assured regardless of broader demand conditions,” the minister told the House.

He further stated that field reports indicate hoarding and panic-booking at the distributor and retail level, driven by consumer anxiety rather than any actual supply shortage.

“The house should be clear on this: the rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure. Delivery Authentication Code coverage is being expanded from 50 per cent to 90 per cent of consumers; under this system, a cylinder can only be logged as delivered when the consumer confirms receipt through a one-time code on their registered mobile, making undocumented diversion effectively impossible to conceal,” Puri said

A 25-day minimum booking gap has been introduced as a demand management measure in urban areas and 45 days in rural and ‘durgam kshetra’ areas.

“OMC field officers and the Anti-Adulteration Cell are coordinating enforcement at the distributor level. The Home Secretary has chaired a meeting with Chief Secretaries of all states to align state-level administration with the central supply and enforcement framework,” the minister said.

Commercial LPG has been regulated to prevent black marketing, not to penalise the hospitality sector, he said.

Commercial LPG is sold in a completely deregulated, over-the-counter market at market price, without any government subsidy. There is no registration system, no booking requirement, no digital authentication, and no delivery confirmation mechanism.

“Had commercial supply been left entirely unrestricted, cylinders purchased over the counter could have been diverted to the grey market at the expense of genuine commercial consumers and domestic households alike. The government has therefore taken the responsible course: to regulate this channel with clear priorities and a transparent allocation mechanism,” said Puri.

A three-member committee comprising Executive Directors from the IOCL, the HPCL, and the BPCL was constituted on March 9.

Extensive meetings have been held with state Civil Supply departments and restaurant associations across the country, and are continuing.

"The committee has assessed genuine need by geography and sector to ensure available commercial volume reaches genuine users first. In a major decision, 20 per cent of the average monthly Commercial LPG requirement will be allocated from today by OMCs, in coordination with the state governments, so that there is no hoarding or black marketing,” said the minister.

Alternate fuel options are being activated to ease pressure on LPG and gas channels, he said.

The non-subsidised consumer price stands at Rs 913 following the recent Rs 60 adjustment, against a market-determined price of approximately Rs 987. Of the Rs 134 per cylinder adjustment required by prevailing global market conditions, the government absorbed Rs 74. The effective additional cost for a PMUY household is under 80 paise per day.

“Equivalent LPG prices in the neighbourhood stand at Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal. OMC compensation of Rs 30,000 crore has been approved against losses of approximately Rs 40,000 crore in 2024-25,” Puri added.

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