Why are people staying away from LPG cylinders? 5.39 crore bookings decreased in 6 months, government’s big disclosure in Parliament


Due to the ongoing military tension between Iran and America in West Asia and the ongoing turmoil in the strategically important Strait of Hormuz, there is huge pressure on LPG supply globally. India fulfills about 60% of its domestic LPG needs through imports and a large part of it comes to India through the Strait of Hormuz. However, amidst this global crisis, a very shocking figure has emerged from India, where a record decline has been recorded in the refill booking of domestic LPG cylinders in the country. According to the written reply given by the Ministry of Petroleum and Natural Gas in the Rajya Sabha on July 27, 2026, Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) had received a total of 18.19 crore refill bookings in January 2026, which fell to just 12.80 crore by June. That means in just 6 months there have been about 5.39 crore (about 30%) less bookings. How was the graph of LPG booking month-on-month? According to data released by the Petroleum Ministry, bookings had increased due to panic when the war broke out in March, but after that it saw a sharp decline: January 2026: 18.19 crore bookings February 2026: 16.65 crore bookings March 2026 (start of war): 18.00 crore bookings April 2026: 13.24 crore bookings (record low) May 2026: 12.98 crore bookings June 2026: 12.80 crore bookings There is also a 34% decrease in the bookings of beneficiaries of Ujjwala Yojana. There has also been a continuous decline in the bookings of poor and rural beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY): January: 4.37 crore February: 4.05 crore March: 3.69 crore April: 3.04 crore May: 2.84 crore June: 2.90 crore in June 2026 as compared to January. About 1.47 crore fewer cylinders were booked by Ujjwala beneficiaries, which represents a direct reduction of 34 per cent. However, a very slight improvement was seen in June as compared to May. What are the main reasons for decline in LPG refill bookings? Although no single reason has been officially confirmed by the government, but according to experts and market analysts there could be several practical reasons behind it: Increase in prices: On April 1, 2026, the price of 14.2 kg domestic cylinder in Delhi was ₹ 913, which increased to ₹ 942 from July 1, 2026. At the same time, after the subsidy of ₹ 300, its price for Ujjwala beneficiaries has increased from ₹ 613 to ₹ 642. Resort to traditional fuels in rural areas: Due to the fear of LPG supply crisis in February-March, people in rural areas increased the use of wood, cow dung cakes, biogas and crop residues along with LPG. Mixed use of fuel allows one cylinder to run for a longer period of time. Trend of alternatives in urban areas: Use of electric cooktops (induction), PNG connections and solar/electric cooking has increased rapidly in cities, thereby reducing dependence on LPG cylinders. Economic Challenges: Many poor families are finding it difficult to get refills every month due to limited monthly budget, forcing them to use alternative means when needed. What does the government say? The central government clarified in Parliament that no official analysis of the domestic LPG shortage or the reasons for the decline in bookings has been released yet. Government says: There is no shortage or shortage of domestic LPG in the country. Despite global uncertainties, LPG is being provided to Indian consumers at much cheaper rates than many other countries in the world. Public sector oil marketing companies (OMCs) are themselves bearing the under-recovery burden of about ₹700 per cylinder. Additionally, the government is continuing to provide targeted subsidy of ₹300 per cylinder to the beneficiaries under the Ujjwala scheme.

Comments are closed.