City Gas Firms Push Piped Cooking Gas with Incentives Amid LPG Supply Worries

City gas distribution companies have rolled out incentives to encourage consumers to shift from LPG to piped cooking gas (PNG) as part of the government plan to ease pressure on LPG supplies, a senior petroleum ministry official said on Monday.

Indraprastha Gas Ltd (IGL) - the CNG and piped cooking gas (PNG) retailer in Delhi and adjoining cities - is offering domestic consumers free gas worth ₹500 if they take a PNG connection and start using it before March 31, while Mumbai-retailer Mahanagar Gas Ltd has announced incentives, including waiver of ₹500 registration charge for domestic household consumers and ₹1-5 lakh security deposit for commercial users. Similar promotional measures have also been introduced by GAIL and BPCL, said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG).

"The current situation is worrying. But LPG is being supplied to our domestic LPG consumers to meet all their requirements. There are no reports of dry-outs at any LPG distributorship," the official said.

LPG refill bookings have declined to about pre-war levels of 50-55 lakh on March 15 from about 77 lakh on Saturday and a peak of 88.8 lakh on March 13, she said, but hastened to add that it remains to be seen if this was a permanent trend or a one-off decline primarily due to March 15 being a Sunday.

The share of online LPG bookings has risen to about 90% from 87%, with the government continuing to promise the use of digital modes of bookings rather than queuing up at LPG dealerships for panic purchases.

She said the current situation was "worrying", but stressed that domestic consumers were continuing to receive supplies and there were no reports of dry-outs at LPG distributorships.

To ease pressure on LPG supplies, consumers are being encouraged to adopt piped natural gas (PNG). The sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has also advised city gas distribution (CGD) companies to deploy additional resources and step up outreach to provide connections to consumers wherever networks are available.

Consumers willing to shift to commercial PNG connections can contact CGD companies through e-mail, customer portals, letters or call centres, she said. "Where pipelines already exist, connections can be provided in the shortest possible time." India imports about 88% of its crude oil, 50% of its natural gas and 60% of its LPG needs. More than half of India's crude imports, about 30% of gas and 85-90% of LPG imports came from West Asian countries, such as Saudi Arabia, Qatar and the UAE, through the Strait of Hormuz.

The conflict has led to a blockade of the Strait of Hormuz, the main transit route for Gulf energy supplies. While India has partly offset crude supply disruptions by sourcing oil from countries, including Russia, gas supplies have been curtailed to industrial users, and LPG availability to commercial establishments, such as hotels and restaurants, has been curtailed to a fifth.

The disruption has begun to ripple through several sectors that rely heavily on LPG. Restaurants have started dropping slow-simmered dishes from their menus because they consume large amounts of cooking gas, while industries, such as brick and tile manufacturing, ceramics and glass kilns, are also facing difficulties in sustaining operations due to gas shortage.

Essential services, including crematories, laundries and hospital kitchens, are similarly struggling to maintain regular activity, even as bakeries, street-food vendors and community kitchens report curtailing output amid tighter LPG availability.

Sharma said crude oil was available in adequate quantities and all refineries in the country were operating at peak capacity. Petrol pumps were functioning normally with no reports of fuel shortages.

Supply of natural gas to CNG and PNG consumers remains at 100%, ensuring uninterrupted availability of CNG for vehicles, she said.

The ministry has appealed to consumers to opt for online bookings for LPG cylinders, which have risen sharply in recent days. According to the latest data, nearly 90% of bookings were made online as of Sunday.

The use of delivery authentication codes has also improved, rising from 53% earlier to 72%, she noted.

On commercial LPG, distribution has resumed in many states and release, or allocation orders have been issued, she said, adding that states are deciding on the priority list of who should receive gas.

State governments and local administrations have been asked to step up efforts to curb hoarding and black marketing. Control rooms have been set up in most states and raids are being conducted in several places, including Uttar Pradesh, Haryana, Andhra Pradesh, Madhya Pradesh, Assam and Mizoram.

Oil marketing companies have also activated their teams and carried out surprise inspections at nearly 1,100 locations, including retail outlets and LPG distributorships.

The government, on March 14, also issued an order appealing to consumers who have both PNG and LPG connections to voluntarily surrender their LPG connection.

Sharma urged consumers to rely on online booking and doorstep delivery of cylinders, avoid visiting distributors unnecessarily and refrain from panic booking or spreading rumours. Consumers were also encouraged to shift to alternative energy sources, such as PNG, wherever available.