Sujay Mehdudia Despite the recent hike in prices of petrol, diesel and Liquefied Petroleum Gas (LPG), lakhs of consumers across the country continue to face "severe supply' crunch of petroleum products, including LPG cylinders, leading to "artificial shortage' and hoarding in small cities and rural India. Informed sources said the Petroleum and Natural Gas Ministry had been updated on the issue and the long wait for new connections and refills. It is not only the northern belt of the country that is facing the "LPG supply crunch' but also States such as Karnataka, Andhra Pradesh, Tamil Nadu. "Despite the Rs.50 increase per cylinder, the Oil Marketing Companies (OMCs) are still not going easy on the supply of LPG and new connections. The unofficial ban on issuing new connections in small cities and rural India continues and in big cities and metros the procedures for getting new connections have been made stringent,' sources said. The curtailment in new connections and supply position by OMCs is partly on account of the heavy subsidy component on the LPG cylinder. The companies want to save as much as possible to curtail their under-recoveries. "New connections are being issued in Delhi. But the same cannot be said about other parts of the country. There is certainly a shortage of cylinders and new norms have been introduced to get new connections. A ban has been imposed on issuing DBC connections,' All-India LPG Distributors Federation senior vice-president, Chander Prakash Yadav said. The situation is no different with regard to supply of petrol and diesel. Despite a Rs.3 hike for a litre of diesel and Rs.5 for petrol, the supply position continues to be precarious. The OMCs continue to curtail the supply of ordinary petrol to petrol pumps. Thrust is given on selling only branded fuels that are costlier by Rs. 4 and Rs.2.50 a litre than ordinary fuel. Quota system "OMCs are still enforcing quota system to sell 50 per cent ordinary petrol and diesel and 50 per cent branded fuel. The petrol pump dealers are being made a scapegoat as they have to face the wrath of customers. We get much higher commission in selling branded fuel but we want supply of ordinary fuel to be increased as we have to watch the interests of consumers also,' Federation of All India Petroleum traders general secretary Ajay Bansal said.