Govt says 1.9 Lakh consumers shifted to PNG, domestic LPG at 60% of present demand as supply remains 'a concern'

Sujata Sharma

• Crude oil stocks adequate, no immediate supply stress
• LPG supply is a concern, but no dry out at petrol pumps
• Port operations, flight evacuations in Gulf remain stable

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Amid the ongoing tensions in West Asia, as much as 1.9 lakh consumers have  migrated from liquified petroleum gas (LPG) to Piped Natural Gas so far as the country continues to grapple with gas shortages, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas said.

She further said that domestic LPG is accounting for 50-60% of present demand, adding that the government is picking up LPG cargoes from "wherever available." The oil ministry has earlier said that India is scouting for more LPG partners and countries like Algeria, Australia, Canada, Norway have approached to sell LPG to India.

Senior officials across ministries on Monday outlined the government’s preparedness on energy supplies, port operations, and evacuation efforts, presenting a picture of continuity with some areas of concern, in the inter-ministerial brief.

Providing an update on fuel availability, Sharma said that “crude oil inventories remain adequate,” indicating no immediate stress on reserves.

She noted that in the past three weeks, around 3.5 lakh new commercial and domestic PNG connections have been rolled out. However, she acknowledged supply-side pressure in one segment, stating that LPG availability “is still a concern yet no dry out has been reported.”

She said that all petrol pumps are working adequately. Rebutting conjectures, Sharma further said that the reports of reducing LPG refill quantities for households to around 10 kg of LPG in standard 14.2-kg cylinders are "highly speculative."

Referring to Iran, she further said that "purchase of crude from some particular country...are techno commercial deals and considerations by the oil marketing companies."

India is likely to emerge as a major buyer of Iranian crude after a 30-day US sanction waiver allowed purchase of barrels stranded at sea, sources said, adding refiners are willing to resume crude imports after almost seven years.

Highlighting distribution measures, Sharma said commercial LPG allocation has been undertaken across 20 states and Union Territories, with 15,800 tonnes already supplied. She also issued a public appeal, urging consumers to “try to conserve LPG and LNG.”

On maritime operations, Rajesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, said port activity remains stable despite the geopolitical situation. “In the last 24 hours, 13 seafarers have been repatriated,” he said, adding that “no congestion has been reported at any ports.”

Sinha told the media that two LPG tankers -- Pine Gas and Jag Vasant -- have started movement around Strait of Hormuz carrying approximately 92,000 MT of LPG.

Evacuation and travel from the Gulf region were also a key focus. Aseem R Mahajan, Additional Secretary (Gulf) in the Ministry of External Affairs, said that since February 28, a total of 3,75,000 passengers have returned to India from the region. He added that flight operations remain robust, with “95 flights expected to operate from the UAE to India today,” while “Qatar Airways [is] to operate 8-10 flights to India today.”

Mahajan also shared updates on movement from Iran, noting that “till date 1031 Indians have crossed out of Iran.”