New LPG connections still on hold due to latest flare-ups in West Asia

Consumers across the country continue to wait for new cylinder connections of liquified petroleum gas (LPG) as supplies remain uncertain due to the episodic flare-ups in the West Asia conflict.

Distributors in New Delhi, Mumbai, Kolkata, Bengaluru, and Chennai said they have not issued any new connections for the 14.2 kg cylinders meant for domestic consumers since mid-March.

The Hindu had earlier reported that applications seeking new LPG connections were still on hold, months after other curbs introduced at the peak of the West Asia crisis were lifted.

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Temporary measure

In a social media response addressing the concern, the Union Petroleum Ministry’s grievance redressal platform said, “Due to the prevailing geopolitical situation, issuance of new LPG connections is temporarily on hold. At present, distributors are prioritizing refill supplies for existing consumers to ensure uninterrupted essential services.”

It added that this was a “temporary measure”, with new connections expected to resume once the “situation stabilises”.

Pawan Soni, general secretary of the Federation of LPG Distributors of India (FLDI), told The Hindu that the supply situation is comfortable at present, although it is difficult to predict whether it will remain so over the longer term.

“Nobody knows how many ships carrying LPG the [oil marketing companies] OMCs will be able to procure, as the situation in West Asia remains uncertain. Moreover, storage capacity will also have to be managed efficiently in line with demand,” he said.

Pending applications

According to Bijan Behari Biswas, vice president of the West Bengal unit of the All-India LPG Distributors’ Federation, there are an average of 100 to 120 applications for new connections pending with individual distributors across the State.

“However, what we have noticed is that most of these applicants prefer to wait for a new domestic connection instead of getting a free-trade LPG cylinder for a temporary period,” he said.

Alternative options

Several distributors across the country have suggested that waiting consumers avail the free trade five-kg (FTL) cylinders and the ten-kg composite cylinders as a temporary measure. At present, demand for these smaller cylinders varies across the five metro cities.

“Naturally, there has been an increase in sales as new connections are not being issued,” a distributor in Delhi said.

An oil-marketing company official in Chennai, speaking on the condition of anonymity said, “We have told distributors to issue a 5-kg FTL connection to anyone seeking a new connection,” the official said, adding, “While the 10-kg cylinders are available, not all distributors may have them.”

Distributors in Mumbai and Delhi both reported a spike in the sale of 5-kg FTL cylinders. However, distributors in Kolkata maintain the demand is not particularly high.

Changing dynamic

Before the West Asia conflict, India imported 60% of its LPG requirement of which 90% transited through the Strait of Hormuz. Amidst the disruption, India augmented its domestic production to offset the impact of lower imports.

With the episodic flare-up of tensions in West Asia, however, distributors have not got the go-ahead to issue new connections. At present, India imports 67% of its LPG requirement from the United States, which is a longer voyage away than the earlier sources in West Asia.

(With inputs from Saptaparno Ghosh, Lalatendu Mishra, Senjuti Sengupta, and Balasubramanyam C.P.)