Amid LPG supply concerns, Centre's assurance for citizens: 'Difficult situation but govt making every effort'

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• Government ramps up LPG production by 28% amid West Asia conflict
• No dry out reported at 1 lakh retail fuel outlets nationwide
• Additional kerosene and commercial LPG released to ease supply

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The petroleum ministry on Thursday listed a series of emergency measures taken by the Centre to stabilise availability of cooking gas for Indians amid a surge in LPG demand triggered by the ongoing conflict in West Asia.

Speaking to the media as the war enters its 13th day, Sujata Sharma, Joint Secretary at Ministry of Petroleum and Natural Gas, said the closure of the Strait of Hormuz had intensified pressure on supply chains even as domestic consumption remains high.

"We import almost 60% of our LPG and most of it, almost 90%, comes from the Strait of Hormuz. It's a difficult situation, but the government is making every effort to ensure that the supply to the domestic consumers is ensured," she said.

LPG output ramped up

To address concerns over cooking gas availability, she said that the government has stepped up domestic production. “LPG production increased by 28% after the government passed orders,” Sharma said, up from 25% on Wednesday.

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Panic bookings push demand higher

Sharma said the distribution system for cooking gas continues to function normally.

“There are 25,000 distributors throughout the country. On the distribution side, no dry out has happened,” she said. However, the ministry noted that the demand has surged sharply due to panic buying.

“There has been a jump in booking numbers due to panic," Sharma said, urging people against panic buying.

Govt releases additional fuel supplies

To ease pressure on LPG supplies, the government has also taken steps to increase availability of alternative fuels.

“Another 48,000 kilo litre of kerosene will be released to states in addition to 1 lakh kilolitre given earlier,” Sharma said.

She added that commercial LPG supplies are also being adjusted to support essential sectors.

“Regarding commercial LPG, some commercial cylinders will also be released in coordination with the state governments,” she said.

The government has also allowed the temporary use of alternative fuels at commercial establishments.

According to Sharma, the Ministry of Environment, Forest and Climate Change has advised state pollution control boards to allow the use of biomass, coal and kerosene for hospitality and commercial segments for a period of one month.

She said that OMCs will also be releasing some commercial 19 kg cylinders soon. "The state government will judge and prioritise consumers in their area where commercial cylinders will be supplied," she added.

She said that as far as the crude situation is concerned, India is in quite a comfortable position.

"We use almost 55 lakh barrels of oil every day. We are the fourth-largest refiner in the world. This is something that gives us a lot of comfort in terms of the availability of products like petrol and diesel," she said.

She said oil marketing companies (OMC) are closely coordinating with states to monitor the situation.

“OMCs are in touch with the state governments and brief them on the daily supply situation,” Sharma said.

On Wednesday, the ministry had said that the government has absorbed a significant part of the cost increased due to the crisis to protect the consumers.

The Petroleum Ministry last week invoked the Essential Commodities Act, directing oil marketing companies (OMCs) like IOCL, BPCL, and HPCL to prioritise 30 crore household connections, hospitals and schools over industry.

The escalating tensions in the Middle East have not only put India’s crude oil supplies at risk but have also pressured the country’s LPG flows, with 80–85% of its LPG needs, with the majority sourced from Gulf suppliers, almost entirely transiting via the Strait of Hormuz.

Government sources earlier told Moneycontrol that India is securing liquefied petroleum gas (LPG) supplies from the international portfolios of global companies, including UAE’s Adnoc (Abu Dhabi National Oil Company), Sonatrach, Algeria’s state-run oil and gas company, and others amid the war between US, Israel and Iran.