• After ‘ceasefire’ whiff, LPG cos rethink switch
    Times of India | 24 March 2026
  • Kolkata: The Centre has asked state-run oil marketing companies (OMCs) to go slow on a proposed plan to supply reduced quantities of domestic LPG cylinders, following easing tensions in West Asia and reports of an apparent ceasefire that could stabilise global energy supplies.

    The ministry of petroleum and natural gas earlier directed Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) to explore the feasibility of supplying 10 kg LPG in standard 14.2 kg cylinders as a temporary rationing measure amid tightening supplies. Officials said the ministry even considered a 7 kg option before zeroing in on 10 kg.

    With geopolitical conditions showing signs of improvement, the urgency behind the proposal has eased, for now. "Companies were asked to examine operational feasibility, and the feedback was it can be implemented within a day or two if required," said a senior OMC official. "At this stage, we have been advised to proceed cautiously given the evolving global situation."

    Despite the pause, concerns over supply remain. Executives warn that LPG availability could worsen over the next month, leaving policymakers with limited options if demand outpaces supply.

    Distributors flagged several technical and financial challenges in implementing the reduced-fill plan. These include recalibration of bottling plants, changes in invoicing systems, and adjustments in pricing structures.

    "A large number of customers have already made online payments for 14.2 kg cylinders. Adjusting that to 10 kg will create confusion and require system-wide changes," said a Kolkata-based LPG distributor.

    Another key concern is the impact on dealer commissions and transportation costs. "The effort involved in delivering a cylinder remains the same whether it contains 10 kg or 14.2 kg. If commissions are reduced proportionately, distributors may resist the move," a Bharat Gas dealer said.

    Consumers, too, expressed apprehension about the proposed changes. "If the quantity is reduced, even with a price cut, it means more frequent bookings and uncertainty about availability," said Anup Chander, a resident of Behala. "People may panic and start hoarding."

    To curb panic booking, the govt earlier introduced a 25-day gap between LPG deliveries and subsequent bookings.

    OMC officials also cautioned that a sudden rollout could trigger confusion and public backlash, especially with key state elections approaching. "Any visible reduction in cylinder quantity could become a sensitive issue," an executive noted.
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