Vidarbha Faces Critical LPG Stock Shortage as Buffer Dips Below One Day's Supply
Nagpur: A significant decline in LPG stock has been reported across cities in the Vidarbha region, raising concerns about supply stability. According to official reports submitted to the government by public sector undertakings (PSUs), the average stock maintained by Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) is currently equivalent to less than a single day's consumption. When accounting for supplies in transit, the total available stock extends to a maximum of two days, highlighting a precarious situation for domestic and commercial users.
Stock Position Varies Among Oil Companies
Indian Oil Corporation Limited (IOCL) finds itself in a marginally better position, with current stock sufficient for approximately 1.4 days. Additionally, gas supplies to meet requirements for another three days are en route, providing a slight buffer. Officials have emphasized that stock replenishment is ongoing and continuous, assuring that there is no imminent risk of stocks depleting entirely at any point. However, the overall trend indicates a tightening of resources.
For over a month, monitoring of buffer stocks by the three PSU oil companies in Vidarbha has revealed a steady erosion. Initially, supplies were adequate to last up to five days, depending on the company. A week later, a slight dip reduced the stock to 4.5 days, including transit inventory. This gradual decline has now culminated in the current critical levels.
Panic Buying and Uneven Demand Intensify Crisis
Amid these supply constraints, demand has not subsided. Both dealers and company officials attribute this sustained high demand to widespread panic buying, as consumers fear potential shortages. In Nagpur alone, daily consumption exceeds 30,000 cylinders when combined across all three companies, placing immense pressure on local reserves.
Data accessed reveals a stark contrast in stock positions across smaller districts. Many of these areas consume less than a quarter of Nagpur's volume, resulting in relatively better stock availability. For instance, in Washim, HPCL maintains a stock sufficient for 11 days, supported by a daily consumption of just 85 domestic cylinders. Similarly, in Gondia, the company holds a two-day buffer with an additional three days' supply in transit, positioning it more favorably compared to other smaller towns in the region.
Operational Challenges and Dealer Complaints
Dealers have raised concerns about operational inefficiencies exacerbating the shortage. They report slow booking processes from the companies' end, with systems not accepting bookings beyond a certain limit. Furthermore, bottling depots, which are crucial for supply distribution, have begun operations later in the day, starting close to noon instead of the early morning hours. This delay has cascading effects on delivery schedules.
"This operational shift has directly impacted our ability to make timely deliveries," stated Mahendra Gavai, an LPG dealer from Nagpur. Bablu Tiwari of the LPG Dealers Association echoed these sentiments, pointing to technical snags in the oil companies' systems as a primary cause for reduced bookings. "Supplies to dealers have been curtailed, and there is a need for clear criteria on quota reductions from the oil companies," Tiwari emphasized.
The combination of dwindling stocks, persistent demand, and operational hurdles paints a challenging picture for Vidarbha's LPG supply chain, urging stakeholders to address these issues promptly to prevent further disruption.
