LPG supply still 20% short of domestic demand

Jaipur: Despite prioritising cooking gas availability for domestic consumers, supplies in the state remain nearly 20% short of the required demand, leading to a growing backlog of refill requests.

Distributors said the mismatch between supply and demand are continuing to put pressure on the distribution system.




The shortage triggered precautionary behaviour, with many consumers resorting to "buffer stocking", which further tightened availability in the market.

"Supply is still 20% short for domestic consumers. People tend to be worried about such situations, which trigger panic buying," said a distributor.

Oil marketing companies are trying to augment supplies through additional imports. However, the two LPG ships expected to arrive in the coming days are unlikely to materially improve the situation in the immediate term, according to distributors.

They explained that logistical constraints and the time required to unload, transport, and distribute the fuel mean that the additional shipments will only marginally ease the pressure on the system.

Industry experts also point out that even if the shipping route through the Strait of Hormuz opened immediately and normal maritime movement resumed, the domestic supply chain would still take time to recover.

"It would take at least 15 days for supplies to start stabilising, as cargo movement, port handling, and inland distribution will take time to gradually return to normal levels."

Meanwhile, distributors continue to grapple with a rising backlog of refill bookings, with many consumers waiting longer than usual for deliveries.

For the non-essential or semi-essential category, getting a supply of cylinders will remain a challenge. "Even as efforts are being made to ramp up imports and streamline distribution for the commercial segment, gas availability remains a big uncertainty for these categories of consumers."

Until the supply chain normalises, distributors expect the tight supply situation and delivery delays to persist.

The booking system is far from normal, as consumers still battle to register for their refills, said a distributor.