Government’s decision amid LPG crisis: States will get 10% more commercial gas supply by promoting PNG

New Delhi, March 18. Amidst the ongoing crisis in the Middle East, the Ministry of Petroleum and Natural Gas has taken an important decision regarding the supply of LPG in the country. Under this, the order issued on Wednesday said that states which will promote Piped Natural Gas (PNG) and help customers shift from cylinder to piped gas will be given additional allocation of commercial LPG.

commercial Announcement to increase LPG quota

According to the government, 10% additional supply of commercial LPG cylinders will be given to such states. At present, Oil Marketing Companies (OMCs) are providing only 20% of the commercial LPG requirement to the states. Now the government has proposed that this allocation can be increased to 30% provided the states take concrete steps to promote PNG connections.

That’s why this step had to be taken

India’s gas-oil supplies have been affected due to increasing tension in West Asia and blockage in the Hormuz Sea Route. About 90% of India’s LPG needs and about 50% of crude oil are supplied through this route, which has deepened the crisis. The government believes that in such times, reducing dependence on LPG and promoting alternatives like PNG can be a long-term solution.

incentive scheme for states

The government has also given various incentives to the states to increase PNG infrastructure. Under this, one percent additional gas allocation will be available on forming committees at the state and district level, which will swiftly resolve the proposals and complaints related to City Gas Distribution (CGD). Apart from this, 2% additional allocation will be given to simplify the permission process for CGD projects. This includes approving old and new applications within the stipulated time.

3% additional allocation on implementation of ‘Dig and Restore’ scheme

The government has made a provision for three percent additional allocation for implementing the ‘Dig and Restore’ scheme. Under this, the companies themselves will be able to repair the road or land after laying the pipeline and will be able to avoid heavy restoration charges, in return for which they will have to give a bank guarantee. At the same time, by reducing the land rent or lease charge for the pipeline network to zero, the states will get four percent additional gas allocation.

supply increasedbut worries persist

Meanwhile, Joint Secretary of Petroleum Ministry, Sujata Sharma said that since March 5, LPG production in the country has been increased by about 40%. Despite this, concerns remain regarding supply. He appealed to consumers to reduce gas consumption where possible and consider shifting to PNG or other alternatives.

The government has also informed that there is adequate availability of Aviation Turbine Fuel (ATF) in the country and there has been no increase in its prices. Also, on the export of refined petroleum products, the government has clarified that domestic demand will be met first, only then a decision will be taken on export of excess production.