India suggests measures to ease 'still worrying' LPG crisis, offers 10% more commercial allocation to states

The Indian government on Wednesday noted that the situation of Liquified Petroleum Gas (LPG) 'still worrisome' and offered additional 10% allocation of commercial LPG to States and Union Territories (UTs).

"LPG issue is still worrisome. There is an improvement in online booking. But it is also true that there are long lines at distributors," said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas.

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The government of India, via a letter, has offered all States/UTs additional 10% allocation of commercial LPG provided they can help in long term transition from LPG to PNG, Sharma said.

Under the assistance framework, the government will provide additional commercial LPG supplies to states as follows:

• 1% additional allocation for formation of State and District level committees for approval of City Gas Distribution (CGD) applications and resolving grievances.
• 2% additional allocation for issuing orders to granting deemed CGD permissions.
• 3% additional allocation for introducing "Dig and restore scheme" for CGD entities.
• 4% additional allocation for reducing the annual rental/lease charges.

"Now, the onus is on the state and union territory governments to take these reforms forward, expedite approvals, and ensure connections for both domestic as well as commercial and industrial PNG consumers in their respective areas," Sharma said while detailing the plan.

The official noted that domestic LPG production has increased by 40% amid gas shortage reports in the country. She added that petrol pumps across the country have adequate stocks of petrol and diesel.

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"I would also like to inform you that approximately 81 per cent of cylinders are now being delivered, showing a significant improvement from 53 per cent to 81 per cent as of yesterday," Sharma said.

Around 15 states and union territories have issued allocation orders, and supply has been ensured to all states, she noted.

'Shift to PNG supply'

The government has requested commercial LPG consumers in the major cities and urban area to switch to PNG. They can apply through email, customer portal, letter, or call center of the respective CGD company as many of these entities have offered incentives for PNG connections.

"As far as natural gas is concerned, PNG and CNG for transport are being supplied to consumers 100 per cent without any cuts," Sharma said. "In this context, we appeal to all of you that wherever LPG consumers, especially commercial consumers, can shift to PNG, and where the CGD network is available, they are requested to make the switch."

In a letter dated March 16, the government requested states and UTs to:

• Issue deemed permission for pending application for laying CGD pipelines.
• Mandate approval of all new CGD permission within 24 hours
• Waive off road restoration and permission charges levied by State or Local authorities.
• Relax working hours and working seasons
• Appoint State nodal officers for support, coordination and faster implementation.

India has added 120,000 new piped gas connections in the last two weeks, the government spokesperson said as liquefied natural gas (LNG) supplies have been disrupted due to the U.S.-Israeli war on Iran.