LPG production rises 28 pc in five days, delivery time remains unchanged: Hardeep Puri

Domestic LPG supply fully protected

Addressing the House, Puri said the government is focused on ensuring that kitchens of more than 33 crore Indian households, particularly those belonging to economically weaker sections, do not face shortages of cooking gas, reported IANS.

“Domestic supply is fully protected, and the standard time from booking to delivery for domestic LPG cylinders remains 2.5 days, unchanged from pre-crisis norms,” he said, reported IANS.

The minister added that hospitals and educational institutions have been placed under priority supply, guaranteeing uninterrupted access to LPG irrespective of broader demand pressures.

Panic booking, not supply shortage, causing local pressure

Puri said field reports indicate that the sudden surge in demand for LPG cylinders in certain areas is largely due to panic booking and hoarding rather than any real production or supply disruption.

“The rush-booking pressure in some localities reflects demand distortion, not a production or supply failure,” he told Parliament, reported IANS.

To strengthen monitoring and prevent diversion of LPG cylinders, the government is expanding the Delivery Authentication Code system. Under this mechanism, a cylinder delivery can only be confirmed when the consumer verifies receipt through a one-time code sent to their registered mobile number.

The coverage of this system is being increased from 50 per cent to 90 per cent of consumers.

Booking restrictions introduced to manage demand

The government has also introduced a minimum gap between LPG bookings as part of demand management measures.

According to the minister, consumers in urban areas must now maintain a 25-day gap between bookings, while a 45-day gap has been introduced for rural and remote (“durgam kshetra”) areas, reported IANS.

Officials from oil marketing companies and anti-adulteration teams are also coordinating with distributors to ensure strict compliance with supply and monitoring rules.

Commercial LPG supply regulated to prevent black marketing

Puri clarified that restrictions placed on commercial LPG are intended to prevent black marketing rather than penalise the hospitality sector.

Commercial LPG cylinders are typically sold in a deregulated market without subsidies or booking requirements. However, the government decided to regulate this channel temporarily to avoid diversion of cylinders to the grey market.

“To ensure genuine users receive supply, 20 per cent of the average monthly commercial LPG requirement will be allocated through oil marketing companies in coordination with state governments,” the minister said, reported IANS.

A three-member committee comprising executive directors from Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited has been formed to assess sector-wise and regional demand.

Government absorbing part of global price increase

Puri said the current non-subsidised LPG price stands at Rs 913 after a recent Rs 60 adjustment, compared to an estimated market-driven price of around Rs 987 per cylinder, reported IANS.

Of the Rs 134 per cylinder increase required due to global market conditions, the government absorbed Rs 74 to limit the burden on consumers.

He added that the effective additional cost for households under the Pradhan Mantri Ujjwala Yojana works out to less than 80 paise per day.

The minister also noted that LPG prices in neighbouring countries remain higher, with cylinders costing approximately Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka and Rs 1,208 in Nepal.

To support oil marketing companies facing losses due to controlled pricing, the government has approved compensation of Rs 30,000 crore against estimated losses of about Rs 40,000 crore in the financial year 2024–25.

(With inputs from IANS)

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