West Asia Crisis Spurs Shift from LPG to Natural Gas in India

More than 39,000 piped natural gas (PNG) consumers have responded to the Indian government's appeal to surrender their LPG connections amidst concerns over supply due to the West Asia crisis, a senior ministry official confirmed on Monday. Joint Secretary Sujata Sharma from the Ministry of Petroleum and Natural Gas revealed these updates during a high-level inter-ministerial briefing.

The government has made substantial efforts to ease LPG supply pressures, particularly by encouraging those with dual connections to relinquish their LPG option. Since March, a notable boost has been observed with 4,93,000 new PNG connections and 5,51,000 new consumer registrations, Sharma noted.

Addressing the supply disruption concerns, Sharma reassured that the government has adopted multiple measures to manage the situation effectively, including augmenting domestic LPG production and extending booking periods. The implementation of delivery authentication codes (DAC) to curb illegal diversion has achieved a 92 per cent coverage, surpassing the initial target.

Sharma highlighted that due to these comprehensive measures, domestic LPG supply remains stable without reports of shortages. Although commercial LPG supplies were initially affected, about 70 per cent of these have been restored, with sales reaching 7,000 tonnes daily.

Auto LPG consumption has also witnessed growth, reaching around 350 tonnes per day recently compared to February's 177 tonnes per day. The government has enhanced the availability of 5 kg LPG cylinders, conducting awareness camps which resulted in the sale of approximately 1 lakh cylinders since early April.

Turning to natural gas supply, Sharma stressed the prioritization of domestic PNG and CNG sectors to maintain full supply levels. States aiding PNG network expansion are benefitting from an additional 10 per cent allocation of commercial LPG, aiding around 22 states and Union Territories. Fuel supply at petrol stations remains stable, with no reported shortages and refineries operating at full capacity.

In a bid to enforce regulations, 1,900 raids have been conducted, leading to penalties for 267 LPG distributors, with 67 facing suspension. Sharma urged the public to disregard unfounded rumors, reaffirming the nation’s robust fuel supply amid the crisis.