India on Thursday slapped a mandatory 21 days gap between the booking of domestic LPG cylinders amid panic buying following havoc from West Asia Oil marketing companies, including individual Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL), launched on March 6, 2023, extended by the previous interval of 15 days. This will be an all xN0VZ4qs measure, done to clamp down on hoarding and level out supply during a spike in demand.
Triggering Crisis
Increased geo-political tensions in West Asia, including US-Iran confrontations and attacks on installations in Qatar and Saudi Arabia, are hampering LPG deliveries through the Strait of Hormuz — a channal though which over 80% of India’s imports pass. India the second-largest importer of LPG with annual demand between 33 million and 39 million metric tonnes relies on the region for 85%-90% of its supply, fuelling fears over shortages. “Panic booking had gone up 15-20% in Kolkata, Noida and Gorakhpur wherein IOC consumed daily orders of 1.5 lakh against the normal demand of about 1 lakh,” he said.
Rule Details
Consumers can only book a refil after 21 days of delivery, which is enforced through agency software lock that are hosted across IOC | BPCL and HPCL network. It will be 21 days for single-cylinder users and up to 30 days for double connections (subject to change from state to state — like Telangana.) Yet, the annual limits remain: 12 subsidised and 3 non-subsidised cylinders per connection. You still have a chance to book right after delivery — but fulfillment is suspended.
Government Response
The government also used emergency powers to order refiners to boost production of LPG from propane and butane stocks, prioritising domestic needs over exports. OMCs guarantee sufficient stocks, Fuel retailers say supply chains are holding; Russian LPG imports eyes quick transport trip 14.2kg cylinders will hike –Rs 60 in Kolkata,currently Rs 939.
Consumer Impact
The multi-million fallout — 10 lakh in Noida alone, 13 lakh in Kanpur — is weighing on household budgets and cooking plans at a time when the uncertainty is audible across the globe. Even home-makers around Kolkata booked extra out of fear that deliveries would be sometime interrupted but the distributors warned hoarding now could disrupt supplies. Low-income families could consider other options, though officials say supplies in the short term are sufficient.