Centre rushes to allay LPG fears, says domestic users top priority

The government on Tuesday issued orders to rationalise the distribution of liquefied petroleum gas (LPG) amid continuing supply disruptions through the Strait of Hormuz which handles bulk Indian import consignments.

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New Delhi, March 10

Dismissing concerns around LPG and Liquefied Natural Gas (LNG) supplies in the country, top sources said there was no shortage and no cause for panic.

They said no LPG distributor was running dry and all bookings (provided refill orders are made after 25 days) are still being honoured in the standard 2.5 days.

"Local LPG production has increased. LPG and LNG consignments are arriving from sources other than those that need to transit the Strait of Hormuz. Every petrol pump is dispensing oil and cooking gas supply is being maintained," said sources.

They said crude oil prices had stabilised today at $87 a barrel and retail price of petroleum and diesel would not be raised.

"Overall, India has entered this disruption better prepared than at any other time in history," said top sources, adding that India was procuring crude from 40 countries and had 70-day LPG and LNG storage capacity, provided everyone stuck to the new rules. Further, where 55 per cent of India's crude oil import was being routed through the Strait of Hormuz 10 days ago, today 70 per cent crude is being sourced from non-Hormuz routes, a senior source said.

To address concerns of hotels associations across India, the ministry also set up a three-member committee of executive directors of IOC, BPCL and HPCL today to engage stakeholders.