The government is boosting domestic LPG supply amid the West Asia crisis. A committee will address restaurant supply issues, and the Essential Commodities Act has been invoked to prioritize gas for homes, transport, and key industries.
The government has taken several steps to ramp up supply of domestic cooking gas in view of the conflict in West Asia and oil marketing companies will also talk to the various restaurant associations to understand their problems of LPG supply, sources said on Tuesday.
A three-member committee comprising Executive Directors of IOC, HPCL and BPCL has been formed by the government to listen to their grievances, the government sources said.
The sources said that the genuine requirement of restaurant associations’ for commercial LPG will be met and this committee will also re-prioritise the supply as per the requirements.
Ensuring Supply and Preparedness
Due to reprioritization, domestic LPG production has increased by 10 per cent in the last few days and consignment of LPG and LNG is coming from various sources. The sources said some new consignment of LPG/LNG is expected very soon.
“We were in crisis earlier but today we are not in any crisis of petroleum products. Indian refineries are running at full capacity as they were operating before the Iran-Israel conflict,” a source said.
“We are sourcing 70 per cent of our crude oil supply from non-Strait of Hormuz sources. We entered in this disruption better prepared,” the source added.
The sources also said that India will recover better than other countries once the West Asia crises is over. The government, they said, has not taken any decision to curb export of refined oil.
Essential Commodities Act Invoked
As the West Asia Conflict continues to put pressure on fuel supplies, the Union Government has invoked the Essential Commodities Act (EC Act ) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
Priority Gas Allocation Detailed
According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six-month average gas consumption. These sectors include: Domestic Piped Natural Gas supply; Compressed Natural Gas for transport; LPG production including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.
The order further states that supply of natural gas to the fertilizer plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability.
It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six-month average gas consumption subject to operational availability.
All City Gas Distribution entities have been asked to ensure that industrial and commercial consumers supplied through their networks receive eighty per cent. of their past six-month average gas consumption subject to operational availability.
The oil refining companies have been ordered to absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six-month gas consumption, subject to operational feasibility.
Every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG has been asked to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it.
Directives to Oil Refineries
Meanwhile, the Ministry of Petroleum and Natural Gas issued orders to oil refineries to increase Liquefied Petroleum Gas (LPG) production and directed that such additional output be channelled specifically for domestic use.
The government prioritised domestic LPG supply to households to ensure energy security for citizens amidst the ongoing uncertainty in the global oil and energy market due to West Asia crisis
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the Ministry of Petroleum and Natural Gas said in a post on X.
To manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)