Around one full month of supply is firmly arranged with additional procurement being continuously finalised, and oil companies are successfully delivering over 5 million cylinders every day.
The government on Thursday said there is no shortage of liquefied petroleum gas (LPG) in the country as domestic production has been increased and one full month of supply arranged, while additional procurement is being finalised.
It said domestic refinery production has been ramped up by 40 per cent, bringing daily LPG output to 50,000 tonnes, more than 60 per cent of the daily requirement of around 80,000 tonnes.
Key Points
- Government says LPG supply is stable with domestic production ramped up significantly and imports reduced due to higher output.
- India has secured one month of LPG supply and continues to finalise additional procurement amid global geopolitical uncertainty.
- Panic buying has eased, with daily LPG demand falling back to normal levels after a temporary surge earlier.
- Strategic petroleum reserves remain strong, with around 60 days of stock cover and procurement secured for the near term.
- Fuel availability remains unaffected domestically, with no rationing and continued exports to over 150 countries globally.
'The net daily import requirement has consequently come down to only 30,000 tonnes -- meaning India is now producing much more than it needs to import,' the ministry of petroleum and natural gas (MoPNG) said in a statement.
'Over and above domestic production, 800,000 tonnes of assured inbound LPG cargoes are already secured and en route from the US, Russia, Australia, and other countries,' MoPNG added.
Around one full month of supply is firmly arranged, MoPNG stated, with additional procurement being continuously finalised, and oil companies are successfully delivering over 5 million cylinders every day.
LPG Production And Imports Data
The demand for LPG cylinders, which had risen to 8.9 million due to panic ordering by consumers, has now come down to 5 million cylinders again.
The allocation for commercial cylinders has been raised to 50 per cent to avoid hoarding or black marketing.
The ministry also said misinformation around strategic petroleum reserves has been circulating, suggesting that only six days of stocks are available in the country.
'India has 74 days of total reserve capacity, and actual stock cover is around 60 days right now, including crude stocks, products stocks, and the dedicated strategic storage in caverns, even as we are on the 27th day of the Middle East crisis,' the ministry said.
It added that around two months of steady supply is available for every Indian citizen regardless of the global situation, next two months of crude procurement has been secured, and India is completely secure for the next many months.
'The quantity in strategic cavern storage becomes secondary in such a supply situation,' the ministry said.
Crude Oil Supply And Exports
The government also clarified that despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Straits.
'High volumes available in international markets -- especially from the western hemisphere -- have more than compensated for any disruption. Crude oil supplies for next 60 days have already been tied up by Indian oil companies,' it said.
The ministry also asserted that India is currently supplying refined fuel to over 150 countries, and because it is a net exporter to the world, domestic petrol and diesel availability is structurally assured.
Also, not a single outlet has been asked to ration supply, it added.
'Steps have also been taken by oil companies to increase credit to petrol pumps to over three days from earlier allowed one day in order to ensure that there is no shortage of petrol and diesel at any pump due to working capital issues of pump owners,' the ministry said.
In a separate statement on the West Asia crisis, the ministry said the supply of LPG was affected due to the prevailing geopolitical situation.
'Twenty-seven states have issued orders to allocate the non-domestic LPG in line with the guidelines issued by the Government of India. For the rest of the states, PSU oil marketing companies (OMCs) are releasing commercial LPG cylinders,' it said.
The ministry also informed that 20 Indian-flagged vessels with 540 Indian seafarers remain in the western Persian Gulf, and the directorate general of shipping -- in coordination with ship owners, other agencies, and Indian missions -- is monitoring the situation.
Feature Presentation: Ashish Narsale/Rediff
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