Despite tension in the Middle East, a big news is coming out regarding the supply of petrol, diesel and LPG in the country. According to sources in the Petroleum Ministry, there is no possibility of any shortage of petrol, diesel and LPG in India. India has sufficient stock of these fuels. At present there is no plan to increase the prices of petrol and diesel in the retail market.
According to sources, in the current situation, global crude oil prices may remain around $100 per barrel. For the first time, the impact of the closure of the Strait of Hormuz is visible on the global supply chain. Earlier about 138 ships used to pass through this sea route every day, which has now reduced to less than three. Despite this, India has kept its supply system balanced.
No change in LNG prices
No change is expected in the prices of LNG for domestic consumers. The government has diverted the industrial supply as per the need, but no rationalization has been done in the supply of gas for domestic consumption. This means that common consumers will not have any problem in gas availability.
Instructions to OMCs to increase production
Regarding LPG, the government has also instructed OMCs to increase production. Currently about 10 percent of LPG is coming from America. Apart from this, supplies are also expected to arrive soon from many other countries including Canada, Australia, Norway and Algeria. Sources say that in the current situation there is no problem regarding LPG stock. The purpose of increasing the cylinder delivery time from 21 days to 25 days is to prevent black marketing and hoarding.
Regarding crude oil prices, the government’s assessment is that even if the prices reach $130 per barrel, there is little possibility of price increase in the domestic market.
Adequate stock of aviation fuel in the country
The situation regarding Aviation Turbine Fuel (ATF) has also been said to be normal. There is sufficient stock of aviation fuel in the country and India itself is an exporter of ATF. At present there is no intention to ban its export.
At the same time, the government has not taken any decision regarding the change in Duty Restructuring. According to sources, there is no intention to impose new duty or reduce the existing duty and the decision will be taken considering the future situation. There is no consideration of duty reduction for domestic prices at present.