LPG Shortage: Govt’s big decision as concerns about gas booking ease; A relief to hotels and restaurants?
- An additional 20 percent allocation will be distributed to specific sectors on a priority basis
- How did the government provide relief earlier?
- Expressed concern over LPG supply
LPG Shortage: As the rush for gas booking is winding down, the central government has taken an important decision. The decision is expected to bring a huge relief to hotels and restaurants. The Central Government has authorized States and Union Territories (UTs) to distribute an additional 20 percent of the stock of commercial LPG (LPG). As a result, the total allocation will increase to 50 percent. This figure also includes the 10 per cent allocation already sanctioned based on the ‘Ease of Doing Business’ reforms implemented to promote ‘PNG’ (piped natural gas) expansion.
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An additional 20 percent allocation will be distributed to specific sectors on a priority basis
The Ministry of Petroleum and Natural Gas explained in a statement that this additional 20 percent allocation will be distributed to specific sectors on a priority basis. These sectors include restaurants, dhabas (street eateries), hotels, industrial canteens (canteens), food processing dairy units, subsidized canteens/centres (for food services) run by state governments or local bodies, community kitchens and 5 kg FTL (Free Trade LPG) cylinders for migrant workers.
How did the government provide relief earlier?
Earlier, the government had resumed partial supply (20 percent) of commercial LPG for consumers. Furthermore, based on the ‘Ease of Business’ reforms implemented to accelerate PNG expansion, the government had sanctioned an additional 10 per cent allocation of commercial LPG to states and UTs.
In addition, 20 States/UTs have issued orders regarding allocation of non-domestic LPG, as per the guidelines issued by the Central Government.
In case of remaining states/UTs, public sector oil marketing companies are currently supplying commercial LPG cylinders. According to the Ministry, a total of around 13,479 tonnes of LPG stocks have been lifted by commercial establishments in various states/UTs in the last one week.
Expressed concern over LPG supply
The ministry said that in view of the current geopolitical situation, supply of LPG is a matter of concern. However, domestic LPG production from refineries has increased. Panic bookings have declined. Currently most deliveries are done through ‘Delivery Authentication Code’ (DAC).
The ministry reiterated, “No incident of fuel shortage (dry-out) has been reported at any of the retail outlets of the oil marketing companies. As adequate stocks of petrol and diesel are available, the government has advised the public not to panic buy again. The supply is being regularly maintained.” The government further informed that all refineries are functioning at their full capacity. They have ample reserves of crude oil. Moreover, adequate stocks of petrol and diesel are being maintained across the country.
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