Delhi govt caps commercial LPG supply at 20% of average consumption

Delhi government has capped the daily regulated distribution of commercial LPG cylinders at roughly 20 per cent of the city’s average consumption

Modi govt, LPG supply, LPG, Indian Oil Corp Ltd, New Delhi, Mumbai, Kolkata, Chennai, petrol, diesel, Middle East, Petroleum — Domestic LPG cylinder prices vary slightly from city to city.

New Delhi: The West Asia conflict has impacted the supply of crude oil and petroleum products, following the closure of the Strait of Hormuz, a narrow water passage between Iran and Oman. Amid reports of an LPG crisis in multiple parts of India, long queues have been seen outside several gas agencies as consumers struggle to get refilled cylinders. Many people have complained about delays in delivery and difficulty in booking refills due to high demand and the unforeseen disruption of the supply’s normal flow.

Which sectors have been placed in the highest priority bracket for LPG distribution?

Amid the prevailing LPG scarcity situation in the national capital, the Delhi government has taken a significant step. As per the latest update, the Rekha Gupta-led government has issued a priority-based policy for the distribution of commercial LPG cylinders amid the prevailing scarcity situation in the national capital.

The policy notice, issued on March 14 by the Department of Food, Supplies and Consumer Affairs in compliance with directions of the Union Ministry of Petroleum and Natural Gas, mandates that up to 20 per cent of the average daily commercial LPG cylinder consumption in Delhi, approximately 1,800 cylinders, be made available for regulated distribution through the three Oil Marketing Companies (OMCs), as reported by news agency ANI.

How will the new LPG allocation rule affect restaurants and other businesses?

According to the notice, eight sectors have been identified under the priority-based allocation framework. “Educational institutions, hospitals, railways and airports have been accorded Priority 1 status and will receive up to 100% of their daily requirement, capped at 11% of the total allocation with an approximate daily consumption of 200 cylinders. Government and PSU institutions, departments and canteens operating on their premises have been placed at Priority 2 with a 13% cap (236 cylinders),” the notice reads.

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The order said, “Restaurants and eateries, accounting for the largest sectoral share, have been placed at Priority 3 at 42% (762 cylinders), followed by hotels, hospitality units, guest houses and trusts at Priority 4 with 4% (72 cylinders). Dairies, bakeries and sweet shops stand at Priority 5 with 11% (200 cylinders), caterers and banquet halls at Priority 6 with 9% (162 cylinders), dry cleaning, packaging and pharmaceutical units at Priority 7 with 1% (18 cylinders), and sports facilities, stadiums and others at Priority 8 with 8% (150 cylinders).”

What new policy has the Delhi government introduced to tackle the LPG shortage?

“The daily cylinder quota will be divided among the three OMCs in proportion to their current market share — Indian Oil Corporation (IOC) at 58%, Bharat Petroleum Corporation Limited (BPCL) at 27%, and Hindustan Petroleum Corporation Limited (HPCL) at 15%,” the notice stated, ANI reported.

The Ministry of Petroleum and Natural Gas has listed several ways through which citizens can book their domestic LPG cylinders. Citizens can book their gas cylinder refills through the WhatsApp application, misscall, IVRS, SMS, relevant OMC’s mobile app, thus reducing the number of people waiting in line at local gas agencies.

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The Times Of Bengal