Auto LPG shortage, rising prices trigger panic in Karnataka

Private LPG suppliers that did have stock, however, increased prices by around Rs 15 per litre, compared to government-regulated suppliers.
Autorickshaws line up at Bowring Service Station in Bengaluru.
Autorickshaws line up at Bowring Service Station in Bengaluru.Photo | Shashidhar Byrappa
Updated on
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BENGALURU: Autorickshaw drivers in Bengaluru were in for a rude awakening on Wednesday (April 1), with liquefied petroleum gas (LPG) – widely used as a fuel for autorickshaws – turning out to be of extremely short supply, causing long lines at stations that were stocked enough to provide it.

A total of 72 auto LPG dispensing stations (ALDS) are functioning across Karnataka, out of which, 31 are available in Bengaluru. The Food, Civil Supplies and Consumer Affairs Department, before the US-Israel war on Iran began, supplied 57.6 metric tonnes of LPG daily through public sector oil marketing companies (OMCs). Since the conflict, the supply has been increased to 64.9 metric tonnes per day. 

The panic surrounding a potential fuel crisis, which began with the ongoing conflict, aggravated considerably on Wednesday; LPG supplies had gone so low, many LPG stations across Bengaluru were forced to shut down with their stocks having been completely depleted. An Essay auto LPG station in Shivaji Nagar, and a Go Gas LPG station in JC Nagar were amongst many such LPG stations in the city that stood barricaded and derelict, completely out of service. According to Balaji Rao, the president of Bangalore Petroleum Dealers’ Association, petroleum and diesel supplies in Bengaluru were uninterrupted, with normal operations being carried out.

The private suppliers of LPG that did have supply, however, increased their prices by around Rs 15 per litre, as compared to government-regulated suppliers. “The auto drivers are suffering. Most of them are poor, and cannot keep up with fuel rates that hover around Rs 105 per litre,” rued M Manjunath, president of the Adarsha Auto and Taxi Drivers’ Union.

Driven by lack of supply at private stations and the steep prices set by the functioning ones, auto drivers queued up at the cheapest option: government-regulated fuel stations. Bowring Service Station, a supplier of Indian Oil, was an extreme case, with a line of autorickshaws that stretched along almost the entire length of St. Mark’s Road on Wednesday. “Indian Oil’s rate for LPG went from Rs 77.74 per litre yesterday to Rs 89.52 per litre today, which is still the lowest rate. Why would drivers go to private suppliers selling LPG at Rs 105 per litre? That sounds unaffordable to even me,” said the station’s manager R Mariyappa.

When asked about the potential of a supply shortage in light of the larger context, Mariyappa admitted that while supply to the Bowring Service Station had been adequate so far, they were operating on a tight margin. “Supply is on a daily basis, so it is difficult to foresee anything. As of today, we are okay,” he added.

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