-Jesal Sampat, Executive Director and CEO, Pune Gas
For decades, India’s LPG conversation has revolved around two important questions: Do we have enough supply? What is the price? But as recent geopolitical developments in West Asia disrupted global energy markets and commercial LPG prices surged, another equally important question emerged: Are we utilizing the LPG already available efficiently? The LPG crisis has reminded us that energy security is about more than supply alone. It has also created an opportunity to rethink how commercial and industrial sectors consume LPG, placing efficiency alongside availability as a national priority.
During the West Asia conflict, India made commendable progress in strengthening LPG availability and ensuring supply continuity through sustained policy interventions, the expansion of distribution networks and the diversification of sourcing. However, future energy disruptions are likely to require the country’s focus to extend beyond securing more LPG to ensuring that every kilogram of LPG is utilized efficiently. This calls for a formal policy framework led by the Ministry of Petroleum and Natural Gas to promote efficient and standardized LPG utilization across commercial and industrial sectors.
At the peak of the conflict, Indian authorities were compelled to prioritize household cooking gas and tighten supplies for commercial and industrial consumers. While overall LPG availability remained relatively stable, businesses across sectors including restaurants, hotels, food processors, hospitals, laundries, MSMEs and manufacturing units faced rising prices, supply constraints and growing uncertainty around regular gas deliveries. The resulting increase in fuel costs placed significant pressure on operating margins and disrupted operations, profitability and business continuity across multiple sectors.
Improving LPG efficiency is now the need of the hour. Energy security is not determined solely by the amount of fuel a nation procures; it is equally shaped by how effectively that fuel is utilized. Every kilogram of LPG used efficiently reduces wastage, eases pressure on overall demand and enables businesses to derive greater value from an existing national resource.
This is where demand-side efficiency deserves greater policy attention. Efficiency has largely remained an operational consideration for individual businesses rather than a national objective. However, as commercial LPG costs continue to fluctuate under the influence of global events, improving utilization efficiency should become an integral part of India’s broader energy strategy. Unlike supply-side interventions, which are often influenced by international markets and geopolitical developments, efficiency improvements can be achieved domestically through better infrastructure, greater awareness, standardized practices and adoption of technologies that enable more effective utilization of LPG.
The current situation demands a collaborative approach involving Policymakers, Oil Marketing Companies (OMCs), Industry Associations and Commercial Establishments. For thousands of businesses across hospitality, healthcare, food processing, manufacturing and industrial facilities, a formal LPG efficiency policy can translate into greater operational resilience while contributing to a stronger national energy ecosystem.
One practical solution already exists and deserves greater attention within the national policy framework: the wider adoption of 47.5 kg Liquid Off-Take (LOT) cylinders for commercial use. Already available through all OMCs since 2007, their adoption has remained limited despite offering significant operational advantages, including near-zero LPG residue, improved safety through controlled gas flow, protection against pilferage and adulteration, and compatibility with higher-efficiency LPG systems. Encouraging OMCs to actively promote LOT cylinders, supported by awareness initiatives, standardization and appropriate incentivization, could accelerate adoption and significantly improve LPG utilization across commercial and industrial sectors.
The situation in the Middle East has therefore created more than a temporary supply challenge. It has presented India with an opportunity to rethink its approach to LPG consumption. India has successfully proven its ability to build a robust LPG supply ecosystem that reaches even the remotest corners of the country. The next chapter must now focus on ensuring that every kilogram of available LPG is utilized as efficiently as possible. In an era where global uncertainties can impact India’s energy security overnight, improving LPG efficiency has become more critical than ever.
While the Central Government’s decision to reduce the price of 19-kg commercial LPG cylinders by ₹183.50 will provide interim relief, the larger issue of LPG efficiency still demands immediate policy attention and a long-term solution.
[The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Kitchen Herald or any Indo Media Analysis Wording Services]
