The government has doubled the daily supply of 5-kg free trade LPG (FTL) cylinders to states for distribution to migrant labourers, with sales already crossing 1 lakh units per day, reflecting a sharp surge in demand for smaller cooking fuel cylinders.
Since March 23, around 7.8 lakh 5-kg LPG cylinders have been sold, while on April 6 alone, over 1.06 lakh units were sold, significantly higher than the February average of 77,000 cylinders per day, according to data from the petroleum ministry.
“It is conveyed that the daily quantity of 5kg FTL cylinder in each State available for disbursal to migrant labourers is being doubled… beyond limit of 20 per cent,” the ministry said in its order, adding that the cylinders will be distributed through state governments with support from oil marketing companies (OMCs).
Context of the latest decision
The move builds on the Centre’s March 21 decision to allow an additional 20% allocation of commercial LPG to states on a priority basis for migrant workers and key sectors such as restaurants, hotels, community kitchens and industrial canteens.
The supply push comes amid rising demand for commercial LPG. Since March 14, around 86,439 metric tonne (MT) of commercial LPG — equivalent to over 45.5 lakh 19-kg cylinders has been sold. On a single day, about 6,530 MT, or more than 3.4 lakh cylinders, were supplied.
To support distribution, public sector OMCs have conducted 1,300 awareness camps over the past four days, selling over 10,000 5-kg cylinders and expanding outreach among migrant workers.
“Supplies of petrol, diesel, LPG and PNG remain stable with no dry out, and fuel stations have adequate stock. LPG distribution continues smoothly with 96 percent online bookings and OTP based delivery,” said Sujata Sharma, joint secretary, petroleum ministry.
She added that “5 kg cylinders have seen strong demand with one lakh sold in a day and over 7.8 lakh since 23 March, supported by awareness campaigns.”
The ministry said a three-member committee comprising executive directors from Indian Oil, Bharat Petroleum and Hindustan Petroleum is coordinating with states and industry bodies to streamline LPG distribution.
To ensure supply security, India has ramped up domestic LPG production to 46,000-47,000 tonne per day, while securing 8 lakh tonne of imports from sources including the US, Russia and Australia.
Parallelly, the government is accelerating a shift towards piped natural gas (PNG) to reduce dependence on LPG. Since March, about 3.76 lakh PNG connections have been activated, with 4.1 lakh additional consumers registered, while over 16,500 users have surrendered LPG connections.
“Natural gas supply to key sectors remains steady… with continued coordination with states to maintain stability and prevent panic,” Sharma said.