'Households Doubly Exposed': Economist Shamika Ravi Raises Alarm Over LPG Supply Concerns

While India maintains the stance of having adequate LPG stocks, economist and member of PM's Economic Advisory Council, Shamika Ravi, noted the vulnerability that Indian households face due to the dual petroleum dependency.

"The dual petroleum dependency: Indian households now depend on petroleum products for both cooking (LPG) & transport (petrol, diesel, fares). Together, LPG + Conveyance account for 7.5–10.2% of monthly budgets. This makes our households doubly exposed to any oil supply disruption - a vulnerability that did not exist at this scale in 2011, when rural LPG adoption was just 17% and conveyance 4.2%," said Shamika Ravi.

In the last decade, the rate of LPG adoption has risen sharply, especially among the rural households. In 2011, 17.2% rural households were using LPG, which grew to 53.4% back in 2023, according to the data shared by the economist on X. In urban households, the adoption rate rose from 70.9% in 2011 to 89.8% in 2023.

The Minister of Petroleum and Natural Gas (MoPNG) Hardeep Singh Puri noted that there was “no shortage of energy in India and no cause for concern” for consumers.

This comes amid government invoking provisions under the Essential Commodities Act (ECA) and directing oil refiners and oil marketing companies to prioritise LPG production and supply for household cooking needs.

Also Read: ‘No Crisis’: Govt Ramps Up LPG; 70% of Crude Shifts Away from Hormuz

Meanwhile, Indian OMC's have taken steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors, including HPCL.

On the other hand, for LPG supply to other non-domestic sectors, a committee of three EDs of OMCs has been constituted to review the representations for LPG supply to restaurants/hotels/other industries.

Currently, India continues to be a net importer of oil, consuming nearly 5.3–5.5 mbpd, while the domestic production stands at 0.6 mbpd.