New Delhi, March 13: The Ministry of Petroleum and Natural Gas announced on Thursday that the government is taking all necessary steps to ensure uninterrupted energy supply. Currently, 5 million LPG cylinders are being delivered daily, urging consumers to avoid panic bookings for cooking gas.
In a statement, the ministry highlighted that crude oil is sourced from over 40 countries, with 70% now arriving through alternative routes, as the Strait of Hormuz remains closed. India consumes 5.5 million barrels of oil daily and ranks as the fourth-largest refiner globally, operating 22 refineries. Many of these refineries are functioning at high-capacity utilization, often exceeding 100%. This substantial refining capacity is providing the country with a more comfortable position regarding petroleum product availability amid the ongoing crisis in Iran.
There are over 100,000 retail outlets supplying petroleum products, all of which are well-stocked. Although the supply of natural gas has been impacted due to force majeure conditions, efforts to procure supplies through alternative routes and suppliers are ongoing. To effectively manage this situation, the government has issued a Natural Gas Control Order under the Essential Commodities Act to prioritize supply.
The statement emphasized that while global conditions are challenging, the government has implemented several measures to maintain the balance between demand and supply. This includes increasing LPG production at refineries, particularly focusing on C3 and C4 hydrocarbon streams—such as propane, butane, propylene, and butylene—specifically allocated to three oil marketing companies for domestic cooking gas. As a result, LPG production has increased by 28% in the past five days due to refinery directives.
With over 25,000 distributors nationwide, there are no reports of any ‘dry outs.’ However, panic has led to a surge in LPG cylinder bookings. Consumers are urged to avoid panic bookings, cooperate with officials, and conserve fuel during this time of global uncertainty.
Priority for non-domestic LPG is being given to essential sectors such as hospitals and educational institutions. A three-member committee of executive directors from IOC, HPCL, and BPCL has been formed to review allocations for restaurants, hotels, and other commercial users. This committee is consulting with state authorities and industry bodies to finalize a plan ensuring that available LPG is distributed transparently and fairly. Starting today, oil marketing companies will allocate 20% of the average monthly commercial LPG requirement in coordination with state governments to prevent hoarding and black marketing.
To alleviate pressure on LPG and gas channels, alternative fuel options are being activated. Kerosene is being made available through retail outlets and PDS channels, while fuel oil is supplied to industrial and commercial consumers.
The Ministry of Environment has advised state pollution control boards to permit the use of biomass, RDF pellets, and kerosene/coal as alternative fuels for the hospitality and restaurant sectors for one month during this crisis, allowing more establishments to adopt these measures and freeing up LPG for priority consumers.
The Coal Ministry has also issued orders to state-selected agencies to supply additional coal to small, medium, and other consumers.
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