India tells LPG users to switch to piped gas wherever possible

India has asked liquefied petroleum gas consumers to avoid panic buying of LPG cylinders and shift to piped natural gas where possible, oil ministry official Sujata Sharma said on Friday.

India’s crude oil, LPG, and liquefied natural gas supplies have been disrupted due to global shipping constraints after the U.S.-Israeli war with Iran halted traffic through the Gulf and the Strait of Hormuz.

“LPG is an issue of concern,” said Sharma, a joint secretary in the federal oil ministry, adding the government is cracking down on black marketing and hoarding of LPG cylinders in coordination with states.

About 333 million households use LPG cylinders, and more than 150 million get gas supplies through pipelines. Sharma said about six million LPG-consuming households could easily switch to piped gas use.

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“We request them to avail piped gas connection to ease pressure on LPG,” she said.

She also said that commercial and industrial consumers in major urban cities facing LPG shortages should contact their local city gas distribution company to arrange a piped gas connection.

Panic buying

India consumed 33.15 million metric tons of cooking gas last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East.

Panic buying had pushed daily LPG booking requests to about 7.6 million as of Thursday from around 5.5 million on March 1, with most bookings made online, Sharma said.

India has asked refiners to boost LPG production. Domestic LPG production has risen by 30% since March 5, she said.

The government has prioritised LPG supplies for households, followed by hospitals and educational institutions, while allowing commercial users to use alternative fuels such as biomass, coal and fuel oil.

India has asked Coal India, the country’s top coal producer, to make coal available to small and medium enterprises and the hospitality sector, including restaurants and hotels, Sharma said.

To overcome the shortage, Indian ports are giving priority berthing to LPG carriers, said Rajesh Kumar Sinha, special secretary at the ministry of shipping.