Govt resumes distribution of commercial LPG cylinders in various states

The Ministry of Petroleum and Natural Gas announced on Saturday that the commercial LPG cylinder distribution has been resumed for some industries in various states.

"After extensive discussions, the government has decided that commercial consumers will also get LPG. Commercial cylinder distribution has been started in various states and consumers have started receiving them", Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas said.

This move is expected to provide a major relief to the Indian industries, especially the hospitality industry which has experienced a significant hit amid gas shortage.


Also read: LPG crisis: Madhya Pradesh traders body seek limited gas supply to prevent shutdown of hotels, eateries

The official said that LPG supply remains a 'matter of concern' for the government in light of the prevailing geopolitical situation; no stockouts have been reported thus far.

The Confederation of All India Traders (CAIT) urged the Madhya Pradesh administration to immediately restore a limited supply of commercial LPG cylinders to prevent the "complete shutdown" of the hospitality and food service sector in Bhopal.

"If the situation continues for a few more days, the entire hospitality and food service sector in Bhopal may face closure, hitting thousands of livelihoods and disrupting daily food services for citizens," association's president Dharmendra Sharma said.

Calling for reduction in panic booking, Sharma re-emphasied that instances of panic booking remain excessively high. From yesterday's 7.5 to 7.6 million bookings, it has now risen to nearly 8.8 million.

On crude oil supply, she said that India has a a sufficient supply of crude, and the refineries are operating at full capacity.

She reiterated that no instances of stockouts have been reported at retail outlets as ample petrol and diesel are available.

"We produce sufficient petrol and diesel domestically to meet our requirements; consequently, we have no need for imports," she said.

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She advised that wherever commercial consumers are facing difficulties or disruptions in their LPG supply, they should be transitioned to PNG connections.

GAIL (Gas Authority of India Limited) held a meeting with various CGD operators and advised them to expedite the provision of PNG connections to all eligible commercial consumers wherever feasible.

Sharma urged citizens to use digital booking tools such as IVRS, SMS booking, WhatsApp booking, and the mobile applications provided by the Oil Marketing Companies (OMCs) and avoid visiting a distributorship in person, stand in a queue, for booking or taking delivery of a cylinder.

"Our Oil Marketing Companies have consistently delivered cylinders directly to your doorsteps in the past, and they will continue to do so. Therefore, there is absolutely no need to panic," she said.

As per an ET report, industry associations took note of the announcement regarding the allocation of around 20% of the average monthly commercial LPG requirement to help address the shortage; however the key concern remains how quickly this allocation translates into distribution and availability at the ground level.

"The allocation may still be insufficient to sustain operational costs and meet the demand of the hospitality sector, particularly for establishments handling large-scale catering and high-volume food preparation. We estimate that nearly 30% of hotels and restaurants are shut due to the on-going shortage," Pradeep Shetty, VP, FHRAI and spokesperson, Hotel and Restaurant Association (Western India) told ET.