New Delhi, March 9: In response to rising global natural gas prices amid geopolitical instability, the Indian government has announced an extension of the LPG cylinder booking period from 21 days to 25 days. This decision aims to curb hoarding practices.
The move comes as market anxiety has increased due to uncertainties stemming from the ongoing conflict between the United States, Israel, and Iran.
Government officials have assured that there is a sufficient supply of LPG in the country. The extension of the booking period is seen as a measure to effectively manage stock levels.
The decision was prompted by a 15 to 20 percent surge in demand, driven by fears of supply disruptions due to escalating conflicts in the Middle East.
An official noted that, on average, a household uses 7 to 8 LPG cylinders of 14.2 kilograms each year, typically requiring refills within six weeks.
A senior official stated that despite international crude oil prices exceeding $100 per barrel, there will be no increase in petrol and diesel prices at this time. Oil marketing companies such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum will absorb the current cost pressures.
The government is closely monitoring global oil markets but has no immediate plans to raise retail fuel prices.
Additionally, the government informed Parliament that India currently has a total storage capacity of 74 days for crude oil and petroleum products. This capacity can help mitigate supply disruptions caused by geopolitical conflicts.
Minister of State for Petroleum and Natural Gas, Suresh Gopi, provided a written response in the Rajya Sabha, stating, “The government has established strategic petroleum storage facilities with a total capacity of 5.33 million metric tons (MMT), which can serve as a buffer during short-term supply crises due to geopolitical conflicts. This is sufficient to meet approximately 9.5 days of crude oil needs. Furthermore, oil marketing companies in the country have a storage capacity of 64.5 days for crude oil and petroleum products. Thus, the current total national storage capacity for crude oil and petroleum products stands at 74 days.”
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