Tuesday, 02 January 2024 12:17 GMT

Govt Boosts Domestic LPG Output By 25% Amid West Asia Disruptions


(MENAFN- KNN India) New Delhi, Mar 12 (KNN) The government has increased domestic liquefied petroleum gas (LPG) production by 25 percent to maintain uninterrupted cooking gas supplies to households amid disruptions linked to the ongoing tensions in West Asia, a senior official from the Ministry of Petroleum and Natural Gas (MoPNG) said.

Sujata Sharma, Joint Secretary in the ministry, said some instances of panic booking and hoarding of LPG cylinders have been observed due to misinformation and urged consumers not to rush bookings. She said the normal LPG delivery cycle of around two-and-a-half days from the time of booking is being maintained.

Household LPG Supply Prioritised

The government has prioritised household LPG supplies over commercial and industrial consumption, invoking provisions under the Essential Commodities Act to ensure adequate availability for domestic users. India has over 33 crore domestic LPG consumers, while the country relies on imports to meet around 60 percent of its LPG demand.

A significant portion of these imports comes from West Asia through the Strait of Hormuz, which has witnessed disruptions in maritime traffic due to the ongoing regional conflict, reported The Indian Express.

To mitigate supply constraints, the government has directed refiners to maximise LPG production and divert propane, butane and other streams from petrochemical production to LPG output.

As a result, domestic LPG production has risen by about 25 percent compared to pre-conflict levels, with the additional supply being channelled primarily to households.

Additional Imports And Anti-Hoarding Measures

However, since domestic production accounts for only about 40 percent of India's LPG consumption, the increase translates to roughly 10 percent of total demand, officials said.

The government and Indian refiners are also exploring additional LPG cargoes from non-Hormuz regions, including suppliers in distant geographies such as North America, with some cargoes already secured in recent days. To prevent hoarding and artificial scarcity, the minimum waiting period for booking domestic LPG refills has been increased from 21 days to 25 days.

Meanwhile, the coverage of the delivery authentication code system, which requires one-time password verification for cylinder delivery, is being expanded to cover around 90 percent of LPG consumers to curb diversion at the distributor level.

Officials added that oil marketing companies and enforcement teams are coordinating with distributors to clear backlogs and ensure smooth deliveries.

Separately, the Union Home Secretary held a meeting with Chief Secretaries and Directors General of Police of states and Union Territories, advising them to take strict action against hoarding of essential commodities and ensure uninterrupted availability of supplies.

States and UTs have also been asked to appoint state-level spokespersons to provide regular updates to the public.

(KNN Bureau)

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