New Delhi. Amid growing global concern regarding LPG supply, the Indian government has intensified preparations to increase gas production domestically. There is a possibility that LPG supply through the Hormuz route may be affected due to US-Iran tension. In such a situation, to reduce dependence on imports, the country's refineries are being prepared to increase production.
Production can increase up to 4 thousand tons daily
The refineries are planning to produce about 4,000 tonnes of additional LPG per day. The current domestic production is said to be around 37,000 to 38,000 tonnes per day. Increasing production can help in maintaining the availability of gas in the domestic market in case of interruption in imports through sea route.
Why is there concern on Hormuz route?
India meets a large part of its LPG requirement through imports and the Hormuz Strait plays an important role in international supply. Increasing tension has increased uncertainty on this route. However, at present there is sufficient stock in the country and some imports are continuing.
Decrease in demand for LPG
Meanwhile, a decline has also been recorded in domestic LPG consumption. Domestic LPG consumption in August was reported to be about 17 percent less than last year. At the same time, the demand for bulk LPG in industries has decreased by about 80 percent. Many industrial units are using alternative fuels.
Imports also reduced
India's LPG imports declined by about 25 percent on an annual basis in August to 14.5 lakh tonnes. At such a time, preparation to increase domestic production is being considered an important exercise to keep the supply system strong. The government is trying to ensure that despite global tensions, common consumers do not face problems regarding the availability of LPG.