Boost PNG, get more LPG: Govt’s offer to states amid supply crisis

New Delhi: As the LPG supply squeeze extends into the third week, the central government on Wednesday promised to increase supplies of commercial LPG to states that fast-track the rollout of piped gas networks in a bid to ease pressure on the cooking fuel availability.

As the war in West Asia blocked India’s access to almost 60 per cent of its LPG, the government prioritised supplies to domestic household kitchens. Supplies to commercial establishments, such as hotels, were initially cut off, but later gave a fifth of their requirement.

Now, the Centre has offered to raise commercial LPG supplies to 30 per cent in states that expedite the rollout of piped natural gas - an easier alternative to LPG.

Briefing reporters, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said that while LPG supplies are constrained, piped natural gas (PNG) supplies to households and industries continue unabated.

“LPG users should shift to PNG wherever there is a city gas distribution (CGD) network nearby,” she said, adding that her ministry has written to states, offering 10 per cent more commercial LPG if they grant deemed permissions to all old applications, and the same after 24 hours of new application for laying pipelines, cut annual rental/lease charges and allow dig and restore schemes.

“Onus is on states and UTs to take this reform forward and expedite approvals,” she said.

On the LPG supply situation, she said there was no dry out anywhere in the country.

“Situation, however, continues to be worrisome” primarily because the imports have been blocked, she said.

Online bookings have increased to 93 per cent, but consumers continue to queue up at dealerships.

“LPG consumers are requested to wait after doing online booking. Cylinders will be delivered to their homes,” she said. “There is no need for panic booking or going to LPG distributors.”

To ease pressure on LPG, the government is promoting commercial and household LPG users to switch to piped natural gas. City gas companies are offering incentives and faster connections.

On Wednesday, Oil Secretary Neeraj Mittal wrote to all state governments and UTs stating that city gas operators have complained about high charges for right of use (ROU) for laying and digging as well as lease rent being levied, which has “dampened the CGD investment climate”.