The Centre has offered to incentivize states with up to 10% more commercial liquefied petroleum gas (LPG) cylinders if they promote the adoption of piped natural gas (PNG) by households.
While noting that LPG supplies remained a cause of concern and that there were still long queues at retail distributors, Sujata Sharma, joint secretary at the petroleum and natural gas ministry, on Wednesday said India’s cooking gas output had risen by 40% over the past two weeks.
“All states and Union territories (UTs) have been offered allocation of 10% additional commercial LPG, provided they help in expediting the expansion of CGD network,” Sharma said.
She said around 120,000 new PNG connections have been given in the last two weeks, and this includes domestic, commercial, industrial and compressed natural gas (CNG) stations.
The Centre has allocated commercial LPG amounting to only 20% of the average use in the past six months in the wake of the ongoing war in West Asia and the blockade of the crucial Strait of Hormuz, which caters to about 20% of global oil and gas demand. It has directed states to disburse it after going through requests from industries and commercial consumers.
In a letter to chief secretaries of states and UTs on 18 March, the petroleum ministry said additional 1% allocation would be made for states which form state and empowered district level committees for approval of CGD applications and resolve grievances. Similarly, more reform measures including accelerated permissions though a single-window mechanism and reduction of rental charges for operating and laying CGD network, would allow states to get more commercial LPG allocation from the Centre.
“In the current LPG shortage scenario due to Middle East crisis, OMCs (oil marketing companies) are providing 20% commercial LPG for states. It would be a smart move at this stage for states to enable transition of LPG consumers to PNG. Therefore, it is proposed that even while LPG for commercial is in short supply, its allocation to be increased to 30% provided States can help in long-term transition to PNG,” said the letter from Neeraj Mittal, secretary in the petroleum ministry at the Centre.
So far, 15 states have started disbursing commercial LPG cylinders under the 20% allocated quota, and 7,200 tonnes has been disbursed, the joint secretary said.
Stocks situation
In terms of stocks of petrol, diesel, crude oil and liquefied natural gas (LNG), Sharma said India continues to be comfortably positioned, and that imports of crude and LNG are coming in from alternate sources.
Rajesh Kumar Sinha, special secretary in the ministry of ports, shipping and waterways, said Indian-flagged vessels with India-bound energy products that are stranded on the western side of the Strait of Hormuz are loaded with 1.67 million tonnes of crude oil and 200,000 tonnes of LNG.
Among these 22 stranded vessels, four are carrying crude and one is carrying LNG.
Officials also said India had got neighbouring countries’ requests for higher supply of petrol and diesel, but the government would consider these only after ensuring that the domestic demand is met and there is supply shortfall in the country. Requests for additional exports have been received from Bangladesh, Sri Lanka and the Maldives.
West Asia is a key supplier of crude oil and LNG to India. Mint earlier reported that India is in talks with Iranian authorities for safe passage for six LPG and four crude carriers through the Strait of Hormuz.