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Free gas, waiving off security deposit: How some distribution firms are incentivising switch from LP
Summary
From free gas worth Rs 500 to waiving off security deposit worth Rs 1-5 lakh for commercial users, a few city gas distribution (CGD) companies have announced incentives to encourage consumers to make the switch to piped natural gas (PNG) as part of the government’s effort to reduce pressure on LPG supplies amid the ongoing crisis.
According to the government, a few measures undertaken recently have led to an increase of 36% in domestic LPG production vis-à-vis pre-West Asia conflict levels, and a further increase is likely over the next few days. These measures included ordering refiners to maximise LPG production and directing them to divert propane, butane, and other streams from petrochemical manufacturing to LPG production. The government has also increased waiting times between cylinder bookings by households from 21 days to 25 days in urban areas and 45 days in rural areas to check hoarding behaviour and manage demand and supply.
Meanwhile, Indraprastha Gas Ltd (IGL) — the CNG and PNG retailer in Delhi and adjoining cities — is offering domestic consumers free gas worth Rs 500 if they take a PNG connection and start using it before March 31. Mumbai retailer Mahanagar Gas Ltd has also announced incentives, including waiver of Rs 500 registration charge for domestic household consumers and Rs 1-5 lakh security deposit for commercial users. Similar promotional measures have also been introduced by GAIL and BPCL, said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG).
“The current situation is worrying. But LPG is being supplied to our domestic consumers to meet all their requirements,” the official said.
LPG refill bookings have declined to around pre-war levels of 50-55 lakh on March 15 from about 77 lakh on Saturday and a peak of 88.8 lakh on March 13, she said, adding it remains to be seen if this was a permanent trend or a one-off decline, primarily on account of March 15 being a Sunday.
The share of online LPG bookings has risen to about 90% from 87%, with the government continuing to promote the use of digital modes of bookings rather than queuing up at LPG dealerships for panic purchases.
The sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has also advised CGD companies to deploy additional resources and step up outreach to provide connections to consumers wherever networks are available.
“Where pipelines already exist, (PNG) connections can be provided in the shortest possible time,” Sharma said.
She said crude oil was available in adequate quantities and all refineries in the country were operating at peak capacity. Petrol pumps were functioning normally with no reports of fuel shortages, she added.
Supply of natural gas to CNG and PNG consumers remains at 100%, ensuring uninterrupted availability of the former for vehicles, Sharma said.
On commercial Liquefied Petroleum Gas (LPG), distribution has resumed in many states, she said.—With PTI Inputs
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According to the government, a few measures undertaken recently have led to an increase of 36% in domestic LPG production vis-à-vis pre-West Asia conflict levels, and a further increase is likely over the next few days. These measures included ordering refiners to maximise LPG production and directing them to divert propane, butane, and other streams from petrochemical manufacturing to LPG production. The government has also increased waiting times between cylinder bookings by households from 21 days to 25 days in urban areas and 45 days in rural areas to check hoarding behaviour and manage demand and supply.
Meanwhile, Indraprastha Gas Ltd (IGL) — the CNG and PNG retailer in Delhi and adjoining cities — is offering domestic consumers free gas worth Rs 500 if they take a PNG connection and start using it before March 31. Mumbai retailer Mahanagar Gas Ltd has also announced incentives, including waiver of Rs 500 registration charge for domestic household consumers and Rs 1-5 lakh security deposit for commercial users. Similar promotional measures have also been introduced by GAIL and BPCL, said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG).
“The current situation is worrying. But LPG is being supplied to our domestic consumers to meet all their requirements,” the official said.
LPG refill bookings have declined to around pre-war levels of 50-55 lakh on March 15 from about 77 lakh on Saturday and a peak of 88.8 lakh on March 13, she said, adding it remains to be seen if this was a permanent trend or a one-off decline, primarily on account of March 15 being a Sunday.
The share of online LPG bookings has risen to about 90% from 87%, with the government continuing to promote the use of digital modes of bookings rather than queuing up at LPG dealerships for panic purchases.
The sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has also advised CGD companies to deploy additional resources and step up outreach to provide connections to consumers wherever networks are available.
“Where pipelines already exist, (PNG) connections can be provided in the shortest possible time,” Sharma said.
She said crude oil was available in adequate quantities and all refineries in the country were operating at peak capacity. Petrol pumps were functioning normally with no reports of fuel shortages, she added.
Supply of natural gas to CNG and PNG consumers remains at 100%, ensuring uninterrupted availability of the former for vehicles, Sharma said.
On commercial Liquefied Petroleum Gas (LPG), distribution has resumed in many states, she said.—With PTI Inputs
Stay updated with the latest - Click here to follow us on Instagram
AI Description
The article discusses incentives by city gas distribution companies to promote the switch from LPG to piped natural gas (PNG). This is part of a broader government effort to alleviate pressure on LPG supplies.