Centre doubles LPG allocation for migrant workers amid cylinder crisis
What's the story
The Ministry of Petroleum and Natural Gas has doubled the allocation of 5kg Free Trade LPG (FTL) cylinders for migrant laborers across all states. The decision, announced on Monday, is based on the average daily supply of these cylinders during March 2-3. The new allocation exceeds the previous limit of 20% specified in a March 21 order.
Distribution details
Additional cylinders to be given to state governments
The additional cylinders will be at the disposal of state governments and their food or civil supplies departments. They are intended for distribution only to migrant laborers in respective states, with the help of public oil marketing companies. Since March 23, around 6.75 lakh such cylinders have been sold, according to government data.
Supply crisis
LPG shortage due to geopolitical tensions
The LPG shortage comes amid rising input costs due to crude oil volatility from geopolitical tensions. The situation is largely attributed to disruptions in global energy supply chains due to the conflict involving Iran, especially around the Strait of Hormuz. This region is a key transit point for a large portion of the world's oil and gas shipments.
Supply management
Priority given to commercial LPG allocations
In light of the crisis, the government has prioritized commercial LPG allocations to sectors like restaurants, hotels, and community kitchens. On March 27, it increased commercial LPG allocation to 70% for textile and processing industries. Despite these measures, reports suggest migrant laborers are leaving cities amid an LPG supply crunch due to ongoing geopolitical tensions.