Govt prohibits PNG users to hold LPG cylinders amid supply shortage

The government on March 14 prohibited domestic piped natural gas (PNG) users to hold liquefied petroleum gas (LPG) connection, as the country faces acute LPG shortage amid the crisis in West Asia.

“No person having a piped natural gas connection and also having domestic LPG connection shall retain a domestic LPG connection, or take refills of domestic LPG cylinders from any Government oil company, or through their distributors. Such persons will be required to immediately surrender their domestic LPG connection,” the Ministry of Petroleum and Natural Gas (MoPNG) said in a notification.

As tensions persist in West Asia, India is facing tightening of LPG supplies as nearly 90 per cent of the country’s LPG imports originate from the region. Amid US-Israel war with Iran, Tehran has blocked Strait of Hormuz, a critical maritime chokepoint through which significant volumes of energy cargoes transit.

As LPG cargoes from West Asia are unable to reach India, the country’s refiners have increased LPG output by 30 per cent after the government directed companies to maximise production.

The government has prioritised LPG allocation for domestic consumers over commercial and industrial users, such as hotels and restaurants. The lock-in period, or the time period for making fresh bookings for LPG cylinders from the last delivery, has also been increased to 25 days from earlier 21 days for urban areas and 45 days for rural areas.