India Ramps Up LPG Supply, Seizes Hoarded Cylinders

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AuthorRiya Kapoor|Published at:
India Ramps Up LPG Supply, Seizes Hoarded Cylinders
Overview

India's government is boosting sales of 5kg LPG cylinders, distributing over 6.6 lakh units since March 23 to meet demand. Authorities are cracking down on hoarding and black marketing, seizing more than 50,000 cylinders and suspending dealerships, while prioritizing fuel for essential services.

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Boosting 5kg LPG Cylinder Availability

The government is significantly increasing the availability of 5kg LPG cylinders, distributing over 90,000 units on April 4 alone. These market-priced cylinders serve as an alternative to the standard 14.2-kg subsidized ones and can be purchased with just a valid ID. Since March 23, approximately 6.6 lakh of these smaller cylinders have been distributed to help manage domestic energy demand.

Action Against Hoarding and Black Marketing

Authorities have launched an intensified crackdown on hoarding and black marketing of LPG. In recent weeks, more than 50,000 cylinders have been confiscated. Over 1,400 distributors have received show-cause notices, leading to the suspension of 36 dealerships. This stringent action aims to ensure fair access to fuel and prevent artificial supply shortages.

Prioritizing Fuel for Homes and Critical Services

A core strategy involves prioritizing fuel supplies for households and critical services. Domestic LPG and piped natural gas (PNG) are being directed to homes, hospitals, and educational institutions. Refinery output is being ramped up, and consumers are advised on managing their refill schedules. Commercial LPG supplies are capped at 70% of pre-crisis levels, with the smaller cylinders acting as an important buffer.

Maintaining Natural Gas Supply and Refinery Output

Full natural gas supplies are being maintained for the residential and transport sectors. Fertilizer plants are set to receive increased supplies, reaching about 90% of average consumption from April 6, with support from arriving LNG cargoes. All refineries are operating at high capacities and maintain ample crude oil inventories. Petrol stations nationwide report full stocks, indicating a robust national energy infrastructure.

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