Residents wait to collect LPG cylinders at a ground near Shivajinagar in Bengaluru on Monday  Photo | Shashidhar Byrappa
Business

LPG panic booking eases to normal levels, says petroleum ministry

The surge in bookings was triggered by the ongoing conflict between Israel and Iran, which disrupted the Strait of Hormuz—a key route through which India accesses nearly 60% of its LPG imports

Rakesh Kumar

The Petroleum Ministry on Thursday said that bookings for domestic LPG cylinders, which had surged due to panic, have now returned to near normal levels.

According to Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, oil marketing companies (OMCs) received around 56–57 lakh booking requests on March 18. “Panic booking is coming down. But the LPG supply situation is still worrisome. However, there is no dry-out at any LPG distributor,” she said.

The surge in bookings was triggered by the ongoing conflict between Israel and Iran, which disrupted the Strait of Hormuz—a key route through which India accesses nearly 60% of its LPG imports. The disruption led to panic among consumers, with long queues reported at LPG distributors across the country.

Before the crisis, daily LPG bookings averaged around 55–60 lakh. During peak panic buying, this figure rose sharply to 85–87 lakh per day.

To manage the situation, the government reduced LPG supply to commercial users such as restaurants and industries, and advised them to switch to alternative fuels like coal and kerosene.

India currently has around 33 crore domestic LPG consumers. The government has also encouraged users to shift to piped natural gas (PNG) where available. Oil marketing companies are offering incentives to promote PNG adoption.

According to the government, around 1.5 lakh new PNG connections have been added across domestic, commercial, and industrial segments. In the past three days alone, about 5,600 users have shifted from LPG to PNG.

Sharma said domestic LPG production has increased by over 40% in the last two weeks. Public sector oil companies are maintaining pre-crisis levels of LPG deliveries. She also noted that domestic CNG supply for transport and PNG supply for households remain normal.

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