West Asia crisis triggers Auto LPG shortage in Telangana; one lakh drivers hit

An auto LPG shortage triggered by the Middle East crisis has hit Telangana, affecting nearly one lakh drivers. Supply disruptions, long queues and higher prices at private outlets have caused transport issues, prompting the State government to seek urgent intervention from the Centre.

Hyderabad: A severe Auto LPG shortage triggered by the ongoing West Asia crisis has pushed nearly one lakh auto-rickshaw drivers in Hyderabad and districts of Telangana to the brink of a livelihood crisis.

By estimates, due to the prevailing supply constraints, there is a shortfall of around 55 MTs (metric tonnes) per day of auto LPG in Telangana. As a result, a majority of private outlets are facing ‘dry-out’, causing disruptions in public transport services and consequent public disorder.

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Thousands of drivers are now trapped. Either they wait in kilometre-long queues at pump stations run by Public Sector Undertakings (PSUs) or pay a premium of an additional Rs 18 per litre at private outlets, just to keep their vehicles running. While the current price of auto LPG at Public Sector outlets is Rs 75 per litre, private marketing companies are selling it at Rs 93 per litre.

With 80 percent of the State’s distribution network comprising primarily private operators, the auto LPG segment in Hyderabad and districts has taken a significant hit.

The auto LPG distribution network in Telangana comprises both Public Sector Undertakings (PSUs) and private operators. PSUs, including IOCL, HPCL and BPCL, collectively account for a limited share of 20 percent, operating 33 outlets.

In contrast, private operators such as Super Gas, Go Gas, Total Energies, Prime Gas, Extra Gas, Aegis Gas and Uni Gas operate a significantly larger network of 110 outlets across the State, accounting for 80 percent of the market share.

According to the Civil Supplies department, a private marketing company, Total Energies, operating 15 Auto LPG outlets in Telangana, has reported that about 80 percent of its LPG requirement is sourced from BPCL and HPCL, with the balance through imports. At present, supplies from PSUs like BPCL and HPCL have been disrupted, resulting in operational difficulties across its outlets.

On its part, recently, the Minister for Civil Supplies, Uttam Kumar Reddy, has urged the Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, to ramp up auto LPG availability at PSU outlets and ensure better regulatory measures to prevent price increase by private entities during the crisis.

The State Civil Supplies Minister urged the Union Petroleum Minister to instruct public sector companies like IOCL, BPCL and HPCL to support private marketing companies by supplying the deficit LPG to private entities engaged in Auto LPG distribution.