Government doubles 5-kg LPG cylinder quota amid Hormuz tensions

The government has doubled the daily quota of 5-kg LPG cylinders for migrant workers amid supply disruptions linked to tensions around the Strait of Hormuz. The Ministry of Petroleum and Natural Gas aims to stabilise fuel supplies with this move. Joint Secretary Sujata Sharma announced the decision via a letter dated April 6.

The Indian government has doubled the daily quota of market-priced 5-kg LPG cylinders for migrant workers to stabilise supplies amid West Asia war disruptions around the Strait of Hormuz. These cylinders, available at distributorships with just an identity card, cost ₹549 in Delhi compared to ₹913 for subsidised 14.2-kg household ones.

At a news briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that a letter dated April 6 doubled the daily 5-kg free trade LPG (FTL) cylinders per state for migrant labourers, based on March 2-3 averages. February saw 77,000 kg FTL cylinders sold, with higher sales on those March days. Since March 23, 7.8 lakh such cylinders were sold nationwide, including over 1.06 lakh on April 6.

Commercial LPG allocations reached 70% of pre-crisis levels, with over 4,300 raids conducted against hoarding and black marketing. Sharma urged citizens to avoid panic buying of petrol, diesel, and LPG, assuring adequate stocks and normal retail operations. Supplies of LPG and piped natural gas (PNG) were prioritised for households and hospitals.

Natural gas for priority segments like domestic PNG and transport CNG remains fully protected. Despite surging global crude prices, India cut excise duties on petrol and diesel while imposing export levies for domestic availability.

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Indian market scene with people buying induction stoves amid LPG shortage fears, PM Modi on screen assuring supplies.
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Government assures LPG supplies amid induction stove boom from shortage fears

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As fears of LPG shortages intensify due to West Asia conflict disruptions, the Indian government has assured adequate supplies and cracked down on black-marketing, while induction stove demand continues to surge following the initial rush reported earlier this week. Prime Minister Narendra Modi urged calm, promising to overcome the crisis like during Covid.

The Centre has raised commercial LPG allocation to states and union territories to 70% of pre-crisis levels, prioritising steel, automobiles, textiles and chemicals industries. The move comes amid supply disruptions from the West Asia war's closure of the Strait of Hormuz, enabled by higher domestic production and imports from outside the region.

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As the Iran-Israel war enters its third week, India faces acute liquefied petroleum gas (LPG) shortages, prompting hoarding crackdowns and panic buying. Government officials assure sufficient stocks, but reports from various states highlight supply chain disruptions. Brent crude prices have surged to $103.14 per barrel, intensifying the crisis.

An LPG shortage, linked to the West Asia conflict, has forced the closure of four Atal Canteens in Delhi, leaving the poor without subsidised Rs 5 meals. Launched by Chief Minister Rekha Gupta last December, the scheme provides affordable lunches and dinners to daily wagers and labourers. Officials say services will resume soon.

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The country's liquefied petroleum gas (LPG) supply remains adequate, but the price of an 11-kilo tank is expected to approach P1,500 next month. Arnel Ty of the LPG Marketers Association Inc. said prices will rise by at least P30 per kilo due to higher shipping and contract costs amid the global oil crisis.

West Bengal Chief Minister Mamata Banerjee warned of a possible nationwide lockdown amid fears of fuel shortages due to the West Asia conflict. Long queues formed at petrol pumps in Uttar Pradesh and other states, though governments assured no shortages. Oil companies confirmed normal supplies.

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Prices of liquefied petroleum gas (LPG) rose on Sunday, February 1, following announcements of price hikes by LPG firms Petron and Solane on Saturday, January 31. Petron applied a P1.50 per kilogram increase, while Solane implemented a P1.55 per kilogram adjustment.

 

 

 

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