The government has extended the gap between LPG cylinder bookings from 21 days to 25 days. The Petroleum Ministry clarified that this change ensures that domestic households get a fair and timely supply of LPG. Officials noted that some consumers had been booking cylinders much earlier than allowed, creating the risk of shortages in certain areas. “Domestic consumers will always be a priority,” government sources cited by various media reports said.
Supply and production measures
To meet rising demand amid global tensions in West Asia, refineries have been instructed to boost LPG production. The government is also prioritising domestic connections over commercial ones.
India has been in talks with multiple countries, including Algeria, Australia, Canada, and Norway, to secure additional LPG supplies. These steps aim to maintain steady availability and prevent panic buying.
Moreover, for issues of LPG for restaurants, automobiles and other sectors, ministry of petroleum has constituted a committee which will examine their requirements and try to provide some volumes to them.
Fuel prices and stock situation
Despite recent price hikes in LPG, petrol and diesel prices are expected to remain stable unless crude oil crosses USD 130 per barrel, according to officials. Crude oil is currently expected to stay around USD 100 per barrel.
The government also assured that there is no shortage of Aviation Turbine Fuel (ATF) and that India is both a producer and exporter of ATF. Authorities are exploring alternative crude import routes beyond the Strait of Hormuz to further strengthen energy security.
LPG price hikes
The domestic LPG cylinder price has seen a recent increase amid the ongoing conflict in the Middle East.
- Delhi: Rs 913 for a 14.2 kg non-subsidized cylinder (up from Rs 853)
- Mumbai: Rs 912.50
- Kolkata: Rs 939
- Chennai: Rs 928.50
Commercial LPG cylinders, widely used by hotels and restaurants, have also risen significantly. In Delhi, a 19 kg cylinder now costs Rs 1,883, marking a sharp rise in the first quarter of this year. Meanwhile, beneficiaries of the Pradhan Mantri Ujjwala Yojana will continue to receive a subsidy of Rs 300 per cylinder for up to 12 cylinders annually.