In response to the ongoing conflict in West Asia affecting fuel supplies, the Indian government is implementing measures to enhance the availability of domestic cooking gas. A three-member committee has been set up, comprising Executive Directors from Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL), to engage with various restaurant associations. The aim of these discussions is to understand and resolve the challenges these associations face regarding Liquefied Petroleum Gas (LPG) supply.

Prioritization of LPG Needs for Commercial Use

Sources indicate that the committee’s primary focus will be to assess and meet the legitimate requirements of the restaurant sector for commercial LPG. This initiative is part of the government’s strategy to reprioritize LPG supply in line with current market demands. Recent adjustments have already led to a 10 percent increase in domestic LPG production, with upcoming shipments of LPG and Liquefied Natural Gas (LNG) expected soon.

Refineries Operate at Full Capacity

Despite previous fears of a crisis, sources confirm that the Indian refining sector is functioning at full capacity. Current operations are reportedly unaffected by the conflict in the region, and about 70 percent of crude oil is being sourced from suppliers outside the Strait of Hormuz, ensuring more stable supply chains. Officials are optimistic about India’s recovery prospects relative to other nations once the West Asia crisis is resolved.

Essential Commodities Act Activated to Ensure Supply

In light of the international pressures on fuel supplies, the Union Government has invoked the Essential Commodities Act to maintain the continuous availability of domestic cooking gas. This directive mandates refineries and petrochemical units to maximize LPG production and redirect key hydrocarbon resources towards LPG. Specific sectors, such as domestic piped natural gas and LPG manufacturing, have been designated for priority gas allocation, ensuring essential services are maintained.

Structured Allocation for Various Sectors

The government has set specific gas consumption thresholds for various sectors. Fertilizer plants will receive at least 70 percent of their average gas consumption from the preceding six months, contingent on operational availability. Additionally, gas marketing entities must ensure that tea industries and other manufacturing sectors receive 80 percent of their historical gas usage, again subject to availability constraints. City Gas Distribution firms are also instructed to provide similar levels of supply to industrial and commercial consumers.

Refineries Directed to Manage LNG Supply Disruption

Oil refining companies have been tasked with managing any disruptions in LNG supplies by adjusting gas allocations to refineries, reducing them to approximately 65 percent of prior gas consumption levels if feasible. All stakeholders in the natural gas supply chain, including producers and marketers, are required to report data related to production, imports, and consumption to the Central Government.

Ministry of Petroleum and Natural Gas Issues Production Orders

To ensure energy security amid global uncertainties, the Ministry of Petroleum and Natural Gas has mandated an increase in LPG production targeted specifically for domestic use. In light of the geopolitical disruptions impacting fuel availability, the Ministry has enforced a 25-day inter-booking period for consumers to prevent hoarding and curb black market activities. These measures reflect a proactive approach to maintain a steady supply of LPG for households amidst fluctuating global energy markets.

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