Amidst the US-Iran war, the government has ordered oil refineries to increase the production of LPG. The government has said that they should produce LPG as much as possible and first ensure its supply within the country. This decision has been taken because uncertainty is increasing in the world’s energy market and the government wants that people should not face shortage of cooking gas.
According to Reuters report, in a government order issued on Thursday, refineries have been instructed to increase the production of LPG and sell this gas only to three state oil companies Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
Concern increased on sea routes
This decision has been taken at a time when due to increasing tension in West Asia, there is increased concern about disruption in global energy supply and sea routes. Especially through the Strait of Hormuz, large quantities of oil and gas are sent around the world, so any problem there can affect the supply.
The government gave this order
The government order also states that propane and butane, the two main substances used to make LPG, should not be diverted for use in the petrochemical industry. Apart from this, the three oil companies have also been asked to ensure that LPG is supplied only to domestic consumers. LPG gas is used for cooking in most of the houses in India. It is mainly a mixture of propane and butane gas. This step of the government has been taken so that even if there is any interruption in global supply, there remains adequate availability of LPG for homes in the country.
Domestic supply will be safe
LPG production is increasing in India, yet the country has to import a large part of its requirement from abroad. India imports about 60% of its total LPG requirement. This means that the country’s supply may be affected due to fluctuations in international prices or obstruction in sea routes. For this reason, it has been decided to increase LPG production in refineries and stop sending propane-butane to the petrochemical industry, so that the supply of domestic gas can be secured when needed.
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