Centre offers up to 30% more LPG to states fast-tracking PNG rollout

New Delhi, Mar 18: As the LPG supply squeeze extends into the third week, the central government, on Wednesday, promised to increase supplies of commercial LPG to states that fast-track the rollout of piped gas networks.

Briefing the press, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said that while LPG supplies are constrained, piped natural gas (PNG) supplies to households and industries continue unabated.

“LPG users should switch to PNG wherever a city gas network is available nearby,” she said, adding that the ministry has asked states to ease approvals for pipeline work.

In return, it has offered 10% more commercial LPG supply if states clear pending applications, fast-track new approvals within 24 hours, reduce rental charges, and allow dig-and-restore schemes.

“Onus is on states and UTs to take this reform forward and expedite approvals," she said.

Now, the central government has offered to raise commercial LPG supplies to 30% in states that expedite the rollout of piped natural gas.

Sharma said commercial LPG stocks have been placed with states, who have been asked to decide on the priority for their usage. So far, 15 states and UTs have issued LPG distribution guidelines.

Also, states have been given 48,000 kilolitres of additional kerosene for meeting cooking and other needs, she said, adding that 12 states have utilised this additional quota.

Oil Secretary Neeraj Mittal wrote to all state governments and UTs stating that city gas operators have complained about high charges for right of use (ROU) for laying and digging as well as lease rent being levied, which has "dampened the CGD investment climate".

States would get an additional 3% of LPG if they introduce a “Dig and Restore Scheme” for CGD entities so they can dig and restore roads, etc., on their own, thereby eliminating restoration charges.

States that reduce annual rental/lease charges for laying/operating the CGD network to zero will get 4% additional commercial LPG, he said.

States can give evidence of implementation of the reforms to get the additional LPG, he added.

On the LPG supply situation, she said there was no dry out anywhere in the country. "Situation, however, continues to be worrisome" primarily because the imports have been blocked, she said.

Online bookings have increased to 93% but consumers continue to queue up at dealerships.

"LPG consumers are requested to wait after doing online booking. Cylinders will be delivered to their homes. There is no need for panic booking or going to LPG distributors," she said.

As the war in West Asia blocked India's access to almost 60% of its LPG, the government prioritised supplies to domestic household kitchens.

Supplies to commercial establishments, such as hotels, were initially cut off, but later gave a fifth of their requirement.

India, Sarma said, continues to be self-sufficient in petrol and diesel, with no fuel dry-outs reported at retail outlets.

PTI