Government warns LPG hoarders of action; urges users to switch to piped cooking gas

New Delhi: The government on Friday said it is ensuring an uninterrupted supply of cooking gas to households amid a surge in panic bookings, and advised around 60 lakh households located near piped natural gas (PNG) networks to consider switching to piped connections for convenience.

It warned hoarders and black marketers of strict action if they try to exploit the crisis created by the war in West Asia.

Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, at a media briefing, said fears of a shortage have led to a spike in LPG cylinder bookings in recent days, even though supplies remain adequate across the country.

She maintained that LPG distributors have sufficient stocks and that supply chains are functioning normally. Consumers were urged to avoid panic booking or queuing up at LPG dealerships. They should place refill orders using online modes only when required.

While supplies to household kitchens, as well as essential sectors like hospitals and educational institutions, were prioritised and provided uninterrupted LPG, supplies to commercial establishments like hotels and restaurants were curtailed as the war in West Asia impacted energy sourcing from overseas.

With domestic production rising by 30 per cent since March 5, when the government took certain measures like diverting streams in refineries to maximise cooking gas output, the Centre has placed a fifth of the commercial gas supplies with the state governments and UTs. The states have been given the authority to decide on the priority for such supplies, she said.

Citing instances of state governments taking actions against LPG hoarders and black marketers, Sharma said the top officials in the ministries of petroleum and civil supplies have held meetings with civil supplies departments of states and UTs to make them aware of the ground situation.

They have been asked to crack down on hoarders and black marketers.

She cited suspension of petrol pump dealerships in a case in Tamil Nadu where it was found dispensing fuel in jerrycans.

More such actions will follow, she said.

"Average refill booking in the country is 55.7 lakh cylinders per day. But (since the crisis broke out about two weeks back), there has been a sudden surge. There were 75.7 lakh bookings for refills done on March 12... This is nothing but panic buying," she said.

"We were delivering 50 lakh cylinders daily previously and continue to maintain that number." The country has 33.37 crore LPG users and another 1.5 crore get cooking fuel piped into their kitchens (called piped natural gas).

She said households located close to existing PNG infrastructure could benefit from switching to piped cooking gas, which offers a continuous supply and reduces dependence on cylinder bookings and delivery cycles.

While LPG supplies had been constrained by the closure of the Strait of Hormuz - the narrow sea lane used by Gulf countries to export oil and gas to users like India, the supply of PNG has continued uninterrupted.

"There are about 60 lakh households near the PNG infrastructure that can avail PNG connections. They should get in touch with the city gas operators to avail of such connections," she said.

Encouraging such consumers to shift to PNG would also help ease pressure on LPG distribution, allowing authorities to prioritise cylinder supplies for households that do not have access to piped gas networks.

Giving details of the inventory situation, Sharma said the country had enough stocks of crude oil and has been able to tap alternate sources to replace the ones that were lost in the closure of the Strait of Hormuz.

Refineries are operating at full capacity, none of the over one lakh petrol pumps in the country has faced a dry out, and LPG dealerships are well stocked with no dryouts, she said, adding that natural gas supplies have been prioritised to the household and transport sector, thereby maintaining supplies to essential sectors.

She urged LPG users to book refills online and not crowd at dealerships.

"We are facing a difficult situation (arising from war in West Asia). LPG supplies to commercial establishments were stopped, but now stocks will be placed at the disposal of the state governments, who will decide on the priority for their distribution," she said.

"We are not able to service all commercial users for the time being." She reiterated that there is no shortage of gas for household users. "There is no need for panic booking, no need for queuing."