The Ministry of Petroleum and Natural Gas has emphasized the importance of domestic LPG supply, implementing measures to combat hoarding and ensure availability.
LPG Production and Supply Amidst Rising Demand
The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding and black marketing. This statement from the Ministry of Petroleum and Natural Gas highlights the current challenges facing the LPG sector in light of increasing demand and supply disruptions.
In response to the ongoing geopolitical tensions affecting fuel supply chains, the government has ordered oil refineries to ramp up LPG production specifically for domestic use. This directive comes at a time when refill delays of 2 to 8 days have been reported in major cities like Mumbai, causing significant inconvenience to consumers.
The Ministry has made it clear that ensuring a steady supply of LPG to households is a top priority. To facilitate this, a new 25-day inter-booking period has been implemented, aimed at curbing hoarding and black marketing practices that have emerged in recent weeks. This measure is expected to stabilize the market and ensure that households have access to the fuel they need.
Moreover, the supply of commercial LPG cylinders has been completely halted, which has severely impacted hotels and restaurants across the country. In Bengaluru, for instance, only about 10% of hotels and restaurants received their LPG supply on a recent day, underscoring the extent of the disruption.
To address the needs of essential sectors, such as hospitals and educational institutions, non-domestic supplies from imported LPG are being prioritized. A committee of three Executive Directors from Oil Marketing Companies has been established to review LPG supply requests from these non-domestic sectors, ensuring that critical services are not adversely affected.
The current situation is a direct result of the ongoing conflict in West Asia, which has led to increased orders for LPG production. The government is taking proactive steps to manage the supply chain and mitigate the impact of these external factors on domestic consumers.
As the situation evolves, the government remains committed to monitoring LPG supply and production closely. Further announcements are expected as the authorities continue to navigate the complexities of the current fuel supply landscape.
