LPG cylinder ‘panic booking’: government issues strict appeal; booking rules see major change

New Delhi (The Uttam Hindu): Amid rumours of a shortage of LPG cylinders across the country, the Ministry of Petroleum and Natural Gas has made an important appeal to the public. The ministry clarified that there is no shortage of gas and urged people to avoid panic booking. To balance demand and prevent hoarding, the government has taken a temporary step by increasing the minimum gap between two bookings from 21 days to 25 days.

Rumours disrupt system; new mechanism to curb black marketing

Addressing a press conference, Sujata Sharma said that due to misinformation and rumours, many people began panic booking LPG cylinders, putting unnecessary pressure on the supply chain. She clarified that the average domestic LPG delivery cycle remains around two and a half days and supply is continuing normally.

In addition, the ‘Delivery Authentication Code’ (DAC) system has now been strictly implemented to completely stop black marketing and diversion of gas at the distributor level.

Increase in domestic production; priority supply for essential sectors

There is relief as domestic LPG production in the country has recorded an impressive increase of 25 percent, and the entire output is being directed to household consumers.

For commercial use, priority in gas supply is being given to highly essential sectors such as hospitals and educational institutions. A three-member committee comprising executive directors of Indian Oil (IOCL), HPCL, and BPCL has been formed to review gas allocation for restaurants, hotels, and other commercial users. The committee is consulting state officials and industry bodies to ensure transparent distribution.

Government approves ₹30,000 crore package

To ensure that rising international gas prices do not directly burden consumers, the government has decided to bear a significant portion of the cost. A compensation package worth ₹30,000 crore has been approved to cover the losses of oil marketing companies (OMCs).

At present, the price of a domestic LPG cylinder in Delhi is ₹913. According to the government, the recent increase of ₹60 for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) translates to an additional expense of less than 80 paise per day.

Officials also presented data showing that despite a sharp 41 percent rise in the Saudi Contract Price since July 2023, the price of Ujjwala cylinders in India has fallen by 32 percent due to government support. The government has appealed to the public for cooperation, stating that LPG prices in India remain significantly lower than in many neighbouring countries.

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