India extends LPG booking cycle for rural households to 45-days amid supply concerns after Hormuz disruption

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• LPG booking cycle for rural consumers extended to 45 days
• States to coordinate release of commercial LPG cylinders
• Alternate fuels like kerosene and biomass allowed for 1 month

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As the shortage of liquified petroleum gas (LPG) continues to stress Indian markets, the oil ministry has increased the lock-in period or the booking cycle to 45 days for rural consumers as against 25 days earlier, officials from oil ministry said.

“The country has never seen such situation in past. Domestic supplies (of gas) have been affected after the closure of strait of Hormuz,” said Sujata Sharma, Joint Secretary, ministry of petroleum and natural gas, adding that booking of cylinder will now be possible after 45 days for rural consumers.

She also said that the country is importing LPG from multiple sources.

“On the distribution side no dry out has happened, however there has been many fold jump in booking numbers due to panic,” Sharma said.

Meanwhile, the oil ministry on March 12 also announced that oil marketing companies will now release some commercial cylinders in coordination with the state governments.

“OMCs will be releasing some commercial 19 kg cylinders also in coordination with the state governments,” Sharma said, adding that state governments will judge and prioritise consumers in their area where commercial cylinders will be supplied.

As per the latest order, 20% of average monthly commercial LPG requirement will be allocated from today by OMCs to industrial and commercial users in coordination with state governments.

The official added that alternate fuel options are also being activated to ease pressure on LPG and gas channels.

“Another 48,000 kilolitre of kerosene will be released to states in addition to 1 lakh kilolitre given earlier,” Sharma said. She further added that the Environment ministry has also advised state pollution control board to allow use of biomass, coal, and kerosene for hospitality and commercial segment for 1 month until the situation eases.

Union Minister for petroleum and natural gas Hardeep Singh Puri in Lok Sabha on March 12 said that there is no shortage of petrol, diesel, kerosene, ATF or fuel oil in the country.

Further, oil ministry said that the country’s production of LPG has increased by 28% as of March 12 since the government passed orders to refineries to maximise their LPG production on March 5.

Meanwhile, addressing the reports of Iran allowing Indian-flagged vessels to transit the Strait of Hormuz, Randhir Jaiswal, Official Spokesperson of the Ministry of External Affairs of India said that in the last few days, India’s External Affairs Minister S. Jaishankar and Iran’s foreign minister have held three calls so far.

“In the last conversation, we discussed issues pertaining to safety of ships in the strait of Hormuz and India’s energy security,” Jaiswal said, adding that the ministry will not be able to furnish any other information at this time.