In order to respond to the LPG shortage in the country there is a proposal by oil and gas companies to reduce the weight of domestic gas cylinders from 14.2 kg to 10 kg. And we think this will make cooking gas more available to more people as we’re very short on resources so many of us are facing this problem.
India requires approximately 93,500 tonnes of LPG per day to achieve overall demand with 80,400 tonnes in a household. However, the supply is slow to catch pace with rising consumption, which makes the availability and timely flow of LPG worrying.
To combat this issue, oil marketing companies consider the possible implementation of 10 kg cylinders as household products to be used as well (we are using the concept of a gas delivery and this is no longer only the product to do and the market is going to be able to find the cheapest one of the gas). The consumers would pay for the less gas, so this is a cost-effective alternative not a price hike.
According to they, by removing cylinders, the same volume of LPG would be distributed to more households. That could help to bridge the supply and demand gap, especially in regions where cylinders are frequently not delivered or are being rushed.
A proposal comes at a time of increasing pressure in energy resource use (part of which is in the form of supply disruptions worldwide and also in the form of increasing domestic demands). LPG accounts for an overwhelming number of customers and is especially popular in urban and semi-urban households, and we should not forget that this is very much a question of policy makers.
The plan is not without challenges. This is because when it comes to politics and political contests so far elections as elections in a host of states a change could get the public so angry and there will be some of this public blowback to business. They might be used to 14.2 kg cylinders and would hence see the price as something less even for those more sensitive for this type of change?
There are also logistics considerations, from distribution networks to supply lines, cylinder production and logistics of cylinders themselves. Oil companies need to reconfigure those operations for this new cylinder size within today’s services to adapt the existing services to the new cylinder size.
Experts say that although for short term relief this can help, long term solutions are increasing LPG production, increasing imports and improving options for energy production. Strategic development and investments will stabilize supply in the future.
The government will need to conduct awareness campaigns to demonstrate that the rationale behind change is clear for consumers in the short term to better facilitate accessibility rather than reduce them.
If employed well, 10 kg LPG cylinders could alleviate our current supply crunch and feed in more of our homes the most essential cooking fuel. A decision will indeed be discussed in the longer run as economics, logistics and political considerations will still play important determinant roles.
