Government pledges to allocate additional 10% commercial LPG to States, UTs

Seeking to enhance penetration of piped natural gas (PNG) among commercial entities whilst according support amidst the setback to liquified petroleum gas (LPG) owing to tensions in West Asia, the Ministry of Petroleum and Natural Gas (MoPNG) has written to State governments and Union Territories pledging to allocate an additional 10% of the cooking gas.

Furthermore, the Ministry sought to provide an additional quantum, in a tiered structure, should the respective governments be able to attain certain eligibility criterions.

Elaborating on the rationale earlier in the day, Sujata Sharma, Joint-Secretary at the Ministry of Petroleum and Natural Gas (MoPNG), told reporters, “Through the letter [to States and UTs], all States and UTs have been offered an additional 10% of LPG allocation provided they help in expediting expansion of CGD network.”

The government has underlined their push for piped natural gas (PNG) is aimed at easing the pressure on liquified petroleum gas (LPG) – supplies of which have been marred with the closure of the Strait of Hormuz amidst the ongoing tensions. India imports 60% of its consumption requirements, of which 90% is routed through the Strait of Hormuz.

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Addressing a query about the present situation of natural gas in the country, Ms. Sharma held, “We have sufficient stocks of LNG and that is primarily one of the reasons that we are asking consumers to shift to PNG.”

She informed that more than 1.2 lakh new PNG connections have been dolled out in the past two weeks. The number is inclusive of domestic, industrial and commercial users, alongside CNG stations.

Possibility for additional quantum

The tiered structure is premised on attaining certain conditions for assisting transition to piped gas. MoPNG held that it would be seeking to allow for an additional quantum of up to 4% of commercial LPG adhering to the same.

For clarity, an additional 1% of commercial cooking gas would be allocated should the States and the necessary district-level constitute committees for approving pending applications of city-gas distributors (CGDs) and resolving grievances. An additional 2% would be allocated if the CGDs are given deemed approvals.

Further, States and UTs would be able to avail an additional 3% allocation should they introduce “dig and restore” scheme for CGD entities.

Finally, the States would be able to avail the 4% additional quantum should they reduce the annual rental and/or lease charges.

“With this, the onus is on State and Union Territory governments to take this reform forward to expedite approvals and ensuring connections to both domestic and industrial PNG consumers in their areas,” Ms. Sharma stated.

15 States have commenced commercial LPG distribution

At the press briefing, Ms. Sharma also informed that 15 States have commenced allocation of commercial LPG cylinders. These include Bihar, Chhattisgarh Delhi, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Manipur, Rajasthan and Uttarakhand, among others. “Almost 7,200 tonnes of commercial LPG, that includes both bulk and auto also, has been already uplifted across the country in the last four days,” she added.