Kolkata's Commercial LPG Supply Dries Up Following Government Directive
Distributors in Kolkata faced a severe shortage of commercial LPG cylinders by Wednesday evening, with stocks nearly exhausted after the Union oil ministry issued a directive earlier this week to halt production for non-priority sectors. This move has significantly impacted businesses reliant on LPG, particularly restaurants and hotels, as reported by sources in the industry.
Government Order Halts Production for Non-Essential Sectors
Sources from oil marketing companies revealed on Tuesday that they received instructions to cease supplying commercial LPG cylinders to distributors, except for those designated for exempted categories such as hospitals, the army, railways, and schools. Distributors were allowed to deplete their existing inventory, but with Bengal's daily commercial LPG requirement estimated at around 320 tonnes, equivalent to 18,000-20,000 cylinders of 19.5kg, the available stock quickly dwindled.
Initially, distributors from Indian Oil, BPCL, and HPCL collectively held between 40,000 and 45,000 commercial LPG cylinders as of Tuesday morning. However, by Wednesday evening, this stock had reduced to negligible levels, leaving many businesses in a lurch.
Restaurants and Hotels Bear the Brunt of the Shortage
The LPG crunch has forced most eateries in Kolkata to restrict their operations starting Wednesday. A distributor of Bharat Gas stated, "Many restaurants are requesting cylinders, but we don't have any. The fresh stock that will arrive will be exclusively supplied to hospitals, schools, and other exempted sectors." Echoing this sentiment, LPG dealers' spokesperson Bijon Bihari Biswas confirmed, "The city has run out of commercial LPG cylinders. Until a revised order and fresh supplies are received, commercial LPG distribution will remain suspended."
Compounding the crisis, the price of commercial LPG cylinders weighing 19.5 kg increased from Rs 1,875.5 to Rs 1,990, adding financial strain to already struggling businesses.
Background: Prioritizing Domestic LPG Supply
Even before the order to stop production for non-priority sectors, the oil ministry had on March 5 instructed all oil marketing companies to prioritize domestic LPG refilling with available stock. A circular from the ministry directed oil refining companies to ensure that propane and butane streams, which are key inputs for LPG, are utilized solely for producing Liquefied Petroleum Gas and made available exclusively to the three public sector OMCs: IOCL, HPCL, and BPCL.
The circular further mandated, "All public sector OMCs shall ensure that LPG so procured is supplied or marketed solely to consumers of domestic LPG only." This policy shift underscores the government's focus on securing LPG for household use amid broader supply constraints, though it has inadvertently triggered a crisis in the commercial sector.
The situation highlights the delicate balance between meeting essential needs and supporting business operations, with Kolkata's hospitality industry now grappling with uncertainty until further supplies are allocated.
