No LPG shortage in Maha, panic buying to blame: Bhujbal

The government, however, admitted that commercial LPG users have been hit, even as the apex restaurants’ association said 40% of eateries in the state are reeling under a cooking gas shortage

MUMBAI: The war in West Asia has not caused domestic LPG stocks to dip; the crisis was triggered by panic buying, the Maharashtra government claimed on Tuesday. The government, however, admitted that commercial LPG users have been hit even as the apex restaurants’ association said 40% of eateries in the state are reeling under a cooking gas shortage.

In a meeting with state food and civil supplies minister Chhagan Bhujbal on Tuesday, state-owned petroleum companies said they typically supply 570,000 LPG cylinders in Maharashtra, daily. (HT Archives)

In a meeting with state food and civil supplies minister Chhagan Bhujbal on Tuesday, state-owned petroleum companies said they typically supply 570,000 LPG cylinders in Maharashtra, daily.

Maharashtra has 35.7 million domestic LPG consumers. “Bookings for gas cylinders have increased 30%, indicating panic booking,” said an official. “We have sufficient LPG supplies with additional gas in storage. This will be sufficient for a few days and will allow us to regulate daily supply according to demand, even though daily input from oil companies has decreased due to lower crude oil supply from West Asia,” said a government official.

Bhujbal said the state government has opened a control room with a WhatsApp number (9769919221) for citizens to lodge complaints regarding malpractices in the supply of cooking gas.

The minister informed the legislative assembly that daily LPG manufacturing has risen to 11,000 tonnes, from 9,000 tonnes, to ensure uninterrupted domestic supply. The government is also exploring other options such as opening counters to sell kerosene at petrol pumps, he said.

Shortage hits eateries

The shortage in cooking gas for commercial establishments has caused eateries to trim their menus, while many have temporarily shut. Representatives of AHAR (Indian Hotel and Restaurant Association) submitted a letter to chief minister Devendra Fadnavis on Monday, stating that 40% of Mumbai’s hotels are reeling under an LPG shortage.

There are 260,000 commercial LPG users in the state, while a small number of eateries—5,621—use Piped Natural Gas (PNG).

“We have managed to supply domestic cooking gas as needed. Commercial supply rests with the central government,” claimed Bhujbal. “According to international reports, Iran has decided to stop oil supply to only enemy nations through the Strait of Hormuz. So we can hope the situation improves and normalise by next week, if all goes according to plan,” he said.

As per directives from the central government, the state will allocate surplus commercial LPG cylinders, he added. Bhujbal also discussed the possibility of restaurants using kerosene as an alternative to LPG, but officials said the establishments cannot immediately switch due to system challenges and fire safety concerns.

“The centre has provided a stock of 3,744 kilolitres of kerosene. We used to have a distribution system in place for kerosene when it was widely used. Since we do not have a distribution and supply mechanism in place now, we have asked oil companies to open kerosene distribution depots at petrol pumps. Kerosene will be sold at ₹61 a litre,” he said.

“District collectors have been directed to prioritise essential services. Hospitals, educational institutions, crematoriums, old-age homes, and orphanages will receive 100% allocation, security establishments, government and public sector units, railways, aviation, police, and prisons are allocated up to 70%. MSRTC, pharmaceutical industry, seed processing units, and fisheries sector are allocated up to 50%,” he said.

Supply chain issues

A government official said a continuous supply of crude oil is necessary for gas production. Bhujbal told the legislative council that for the last 10-15 days, there were constraints transporting the fuel from West Asia due to the war.

In Dubai and other Gulf countries, oil production is down to 30%. Although Indian oil tankers have started reaching India, the supply chain was disrupted in the last 10 days, mainly for commercial consumers, Bhujbal said.

The assembly was informed that after district collectors were told to set up vigilance, 2,129 inspections and raids were conducted – 1,208 LPG cylinders were seized; goods worth ₹3,366,411 were confiscated; 23 cases were registered; and 18 people were arrested under the Essential Commodities Act.