New Delhi, March 12: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced in Parliament on Thursday that LPG production has increased by 28% in the last five days following directives given to refineries. He also mentioned that additional LPG purchases are being actively pursued.
Puri emphasized that the government’s top priority is to ensure that over 330 million households, particularly those from economically weaker sections, do not face any gas shortages. He assured that the supply of domestic gas remains completely secure, and the average delivery time for cylinders continues to be 2.5 days, consistent with pre-crisis levels.
He informed Parliament that the booking to delivery time for domestic LPG cylinders remains unchanged at 2.5 days. Additionally, hospitals and educational institutions are receiving uninterrupted gas supplies on a priority basis.
Puri noted that there have been reports of distributors and retail levels showing tendencies to hoard gas cylinders and make excessive bookings out of panic. However, he clarified that this situation is not due to any actual supply shortage but rather a result of public concern.
The Minister further stated that the government is expanding the Delivery Authentication Code (DAC) system, which is currently applicable to about 50% of consumers and will be increased to 90%. Under this system, cylinder deliveries will only be recorded once consumers confirm them via a one-time code sent to their mobile phones, making it easier to prevent gas supply manipulation.
To balance demand, a minimum booking gap of 25 days has been established for urban areas and 45 days for rural and remote regions.
Puri mentioned that field officers from oil marketing companies and anti-adulteration cells are monitoring at the distributor level. Additionally, the Central Home Secretary has held discussions with Chief Secretaries of all states to integrate state administrations into this system.
He clarified that the aim of regulating commercial LPG supply is to prevent black marketing, not to harm the hotel and restaurant industry. Commercial LPG is sold at market-based prices without subsidies, and there is no registration or booking system for it.
Puri explained that if commercial LPG sales were completely deregulated, cylinders purchased over the counter could end up in the illegal market, harming genuine commercial and domestic consumers. Therefore, the government has implemented a clear priority and transparent allocation system.
To oversee this arrangement, a three-member committee comprising executive directors from Indian Oil, Hindustan Petroleum, and Bharat Petroleum was formed on March 9. This committee has been conducting meetings with state civil supply departments and restaurant associations across the country, which are ongoing.
The committee has assessed the actual needs for commercial LPG based on various sectors. In a significant decision, starting today, oil companies will allocate 20% of the average monthly commercial LPG demand to prevent hoarding and black marketing.
Puri also mentioned that alternative fuel options are being activated to alleviate pressure on LPG and gas supplies.
He revealed that following a recent adjustment of ₹60, the price of a non-subsidized domestic LPG cylinder is ₹913, while it should have been around ₹987 based on international market rates.
According to global prices, a ₹134 increase per cylinder was necessary, but the government absorbed ₹74 of that cost. As a result, the additional expense for beneficiaries of the Ujjwala scheme amounts to less than ₹0.80 per day.
Puri noted that LPG prices in neighboring countries are higher than in India, with cylinders costing approximately ₹1,046 in Pakistan, ₹1,242 in Sri Lanka, and ₹1,208 in Nepal.
He also stated that the government has approved a compensation of ₹30,000 crore to offset losses of around ₹40,000 crore incurred by oil marketing companies in 2024-25.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
