Amid Rising LPG Costs, Industry Seeks India’s First LPG Efficiency Policy

Amid the uncertainty of the geopolitical tensions in the Middle East, there’s a significant impact on the global energy markets. An Indian energy company has urged the Central government to introduce what is they’ve described as India’s first LPG Efficiency Policy Framework. The proposal comes at a time when disruptions related to the supply of natural oil and gas have affected the supply and sale of the resources locally across India. The proposal comes at a time when disruptions linked to the ongoing Iran conflict have pushed up commercial LPG prices, which have increased the operating costs for businesses that rely solely on fuel.

As per a report by NDTV, Pune Gas has submitted an appeal to the Ministry of Petroleum and Natural Gas, which calls for a policy focused on improving the efficiency of LPG consumption in India. As per the report, the company stated how India has managed to ensure an uninterrupted supply of LPG despite the global uncertainties. The next steps should involve a strategy towards solidifying energy security while reducing wastage and improving fuel utilisation.

This appeal comes at a time when a sharp rise in commercial LPG prices can be noted. Pune gas noted that commercial LPG cylinder prices have increased to Rs 3,100 from the earlier price of Rs 1,884. Commercial supply witnessed a strong rise compared to domestic prices as a way to absorb the shock of the sudden price hike on the domestic front. This increase affected businesses the most, including restaurants, hotels, food processing units and MSMEs.

To address these challenges, the company has proposed a comprehensive policy framework which is aimed at standardising LPG usage practices and encouraging the adoption of more efficient infrastructure across the commercial and industrial establishments. One of the key recommendations is to promote the use of larger 47.5-kg LOT cylinders wherever it is operationally feasible.

As per the body, these can help in improving fuel utilisation while reducing wastage, pilferage and handling-related inefficiencies. The company also believes that widespread adoption of such systems can contribute to improved safety standards and management of available LPG supplies.

The framework further suggests policy incentives to accelerate the adoption of efficient LPG systems. Such measures could help businesses lower their operating costs while supporting broader objectives related to energy conservation.

The same report cited Pune Gas Executive Director and CEO Jesal Sampat, who emphasised that India has traditionally focused on the amount of LPG procured and supplied, but greater attention must now be paid to how the fuel is used. He argued that reducing avoidable wastage can lower the operating expenses and ease pressure at the national level. As per the submission, Pune Gas highlighted LPGenius, which is an indigenous LPG management system developed under the Atmanirbhar Bharat initiative. The company stated that the system is designed to improve the efficiency of LPG.