LPG Cylinder Rates Remain Steady Amid Shift to PNG in Indian Cities

LPG Cylinder Rate Today: March 18 Update

India's LPG supply pressure is easing as the third oil tanker, Jag Ladki, docks at Gujarat's Mundra Port, amidst tensions in the Middle East. Despite government assurances of no shortage in LPG, LNG, and PNG, panic buying and long wait times persist.

Demand for PNG connections remains strong, with Indraprastha Gas Ltd recording 22,000 fresh registrations in Delhi in the first week of March, a significant increase from the usual 800 new registrations. This trend highlights the growing need for alternative cooking gas solutions.

Market Analysis

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A report by Moneycontrol estimates that India will require around 29-34 LPG tankers each month to meet domestic demand, even with a boost in cooking gas production. This estimate is based on an assumed carrying capacity of 46,000 tonnes per vessel.

Government Projections

The government projects that monthly LPG demand could rise to 2.9 million tonnes by FY27. However, even with a 30% increase in domestic output, a shortfall of over 1.4 million tonnes per month is expected, necessitating imports of approximately 1.56 million tonnes.

Reliance on Foreign Supplies

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Under a more optimistic scenario of a 50% production increase, import requirements would still exceed 1.34 million tonnes, underscoring India's continued structural reliance on foreign supplies. This highlights the need for sustained investment in domestic production to meet growing demand.