Telangana Minister Appeals to Centre Over Critical Auto LPG Shortage
In a significant development, Telangana's Civil Supplies Minister, N Uttam Kumar Reddy, has urgently appealed to Union Petroleum and Natural Gas Minister Hardeep Singh Puri to address a severe shortage of Auto LPG in the state. The minister highlighted a daily deficit of 55 metric tonnes (MT) of Auto LPG, which is causing widespread disruptions to public transport services and affecting thousands of livelihoods.
Impact on Auto-Rickshaws and Public Transport
In a detailed letter to the Union minister, Uttam Kumar Reddy emphasized that approximately one lakh auto-rickshaws in Telangana rely on LPG for fuel. The current shortfall of around 55 MT per day has led to dry-outs at a majority of private Auto LPG outlets, severely inconveniencing commuters and hampering the smooth operation of public transport. The minister stressed that this situation is creating operational difficulties and financial strain for auto drivers and their families.
Supply Constraints and Market Dynamics
The minister pointed out that Telangana is strictly following the Centre's directives amid the ongoing Middle East crisis, ensuring 100% supply of domestic LPG and regulating commercial LPG. However, the Auto LPG segment has been disproportionately impacted. Oil public sector undertakings (PSUs) such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) operate only 33 outlets in the state, holding about 20% of the market share.
In contrast, private operators account for nearly 80% of the market share with over 110 outlets across Telangana. The disruptions in Auto LPG supply from oil PSUs have severely affected these private distributors, exacerbating the shortage.
Case Study and Price Disparities
Citing the example of a major private operator, Total Energies, which runs 15 outlets in Telangana, Uttam Kumar Reddy noted that around 80% of its LPG requirement depends on supplies from PSUs. With these supplies now disrupted, the operator faces significant operational challenges. Furthermore, the minister highlighted a steep price difference: Auto LPG is currently priced at ₹75 per kg at PSU outlets, while private operators are charging up to ₹93 per kg, adding to the financial burden on auto drivers.
Urgent Measures Requested
To mitigate the crisis, Uttam Kumar Reddy has urged the Centre to take immediate action. His recommendations include:
- Ramping up Auto LPG availability at PSU outlets to meet the daily shortfall.
- Directing public sector companies to support private distributors by supplying the deficit LPG.
- Implementing regulatory measures to prevent excessive price differences and ensure affordability.
The minister underscored the urgency of the situation, stating that prompt intervention is essential to alleviate current challenges, ensure uninterrupted public transport services, and protect the livelihoods of auto drivers and their families. This appeal comes at a critical time as Telangana grapples with supply constraints that threaten both economic stability and daily commuter convenience.
