Govt exploring options to tackle auto LPG shortage: Uttam

Civil Supplies Minister N Uttam Kumar Reddy said the Telangana government is exploring options to address the auto LPG shortage in Hyderabad. The crisis, caused by delayed LPG vessel arrivals amid Middle East tensions, has affected urban mobility and triggered protests by auto drivers

Hyderabad: Civil Supplies Minister N Uttam Kumar Reddy on Monday stated that the State government was exploring all options to overcome the shortage of auto gas supplies in Hyderabad.

He held a meeting with officials and representatives from major LPG suppliers, including IOCL, Go Gas, Total Energies (French company), Super Gas and Prime Gas here on Monday. The meeting was convened in the wake of reports that auto- gas shortage has impacted urban mobility in the city and auto-rickshaw drivers were staging protests at places.

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“A final decision on contingency measures will be taken after consultations with the Chief Secretary and briefing the Chief Minister on the ground realities of the auto LPG supply situation,” the Minister said.

Additionally, the Minister directed officials to explore ways to scale up operations of public transport, including Hyderabad Metro Rail and TGRTC buses, to offset the challenges caused by the auto-LPG shortage.

Uttam Kumar Reddy also wrote a formal letter to union Minister for Petroleum and Natural Gas, Hardeep Singh Puri requesting intervention to scale up supplies and resolve the crisis.

Root cause of the crisis

The shortage has been triggered by two to three days delay in vessel arrivals carrying imported LPG. The delays compounded by the prevailing geopolitical situation in the Middle East affecting global supply chains.

Private companies source bulk LPG from ports such as Krishnapatnam, Jaigad (Maharashtra), Mumbai and terminals in Tamil Nadu. While some firms are exploring alternative international sources, firm timelines are yet to be confirmed, the department said in a press release.

Auto LPG demand in Hyderabad
– Average daily requirement for auto LPG in Hyderabad – 202 metric tonnes (MT)
– Current supply-147 MT
– Daily deficit – Nearly 55 MT (27 to 30 per cent shortage)
– Shortage is primarily confined to private sector, which commands about 75 per cent of the auto LPG market in the city
– PSUs collectively hold only 25 to 30 per cent market share
– PSUs have maintained better supplies, with IOCL alone providing its quota of 35 MT a day through its 23 outlets
– There are 143 auto LPG outlets in Hyderabad (116 within ORR and 27 beyond)
– Currently, around 25 outlets are non-functional, with 17 in core city area