Commercial LPG supplies in the country, which were temporarily curtailed to prioritise domestic supply, have gradually increased from 20 per cent to 70 per cent, the Centre said on Friday (March 27).
The remarks come amid concerns over energy security in the ongoing West Asia conflict that choked the crucial Strait of Hormuz, through which, according to the Ministry of Petroleum and Natural Gas, 90 per cent of India’s LPG imports were routed.
Phased restoration of commercial supplies
“As you know, India has a high dependency on LPG imports, and about 90% of these imports were coming through the Strait of Hormuz. Therefore, the Government of India decided to prioritise domestic consumers,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) during a joint inter-ministerial briefing.
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“In this process, commercial supplies were temporarily halted. After that, through calibrated decisions, 20% of commercial supplies were restored, followed by an additional 10% to support the expansion of the PNG network. Later, this was increased to 50%, and today it has been raised to 70%,” she added as quoted by YEARS.
Distribution push to essential segments
Elaborating further, the official stated that as part of the efforts, around 30,000 tonnes of commercial LPG have been supplied since March 14, adding that ensuring supply to essential segments, including restaurants, hotels, industrial canteens, migrant workers, and key sectors such as steel, automobile, textiles, chemicals and plastics, has been prioritised.
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“As a result of these efforts, approximately 30,000 tonnes of commercial LPG have been supplied to commercial consumers from March 14 until yesterday. When these decisions were taken, it was ensured that priority would be given to restaurants, dhabas, hotels, industrial canteens, and migrant labour,” said Sharma.
“Additionally, the latest order clearly states that priority sectors include steel, automobiles, textiles, dyes, chemicals, and plastics. Around 30,000 small (5 kg) cylinders have also been distributed to migrant workers under the Free Trade LPG (FTL) category,” she added.
‘Crude oil supply for two months ensured’
Sharma further stated that the conflict in the Middle East has not only affected the supply of crude oil, LPG and LNG but has also pushed the price of crude oil.
However, the official assured that India has sufficient stock of crude oil and supplies for the crude oil for the next two months have already been ensured.
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“As you all know, we are currently in a war-like situation, and due to the ongoing conflict in the Middle East, our supplies have been affected. Crude oil, LPG, and LNG have all been impacted. Crude prices have increased, and the prices of other products have also risen in international markets,” said Sharma.
Govt measures and supply outlook
“However, the Government of India has taken several important decisions at multiple levels to effectively manage this situation. As of today, we have sufficient crude inventories, and supplies for the next two months have already been secured. The situation is comfortable with respect to LPG and PNG as well. Our refineries are operating at 100% or even above capacity, and domestic LPG production has increased by 20%,” she added.
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