New Delhi: In a decisive move to counter geopolitical disruptions in West Asia, the Ministry of Petroleum and Natural Gas (MoPNG) has issued an emergency directive to oil refineries.
On Monday, the Ministry issued a directive via X (formerly Twitter) ordering all domestic oil refineries to immediately ramp up Liquefied Petroleum Gas (LPG) production.
The order mandates a significant hike in Liquified Petroleum Gas (LPG) production, specifically earmarked for domestic consumption to shield Indian households from the ripple effects of the ongoing conflict and the developing oil crisis.
To ensure equitable distribution and prevent market manipulation, the Union Ministry has introduced strict regulatory measures. By managing the frequency of bookings, the government aims to stabilise the supply chain and eliminate illegal practices such as black marketing during this period of heightened tension.
The surge in oil prices, fueled by the intensifying conflict involving the US, Israel, and Iran, has sent shockwaves through the hospitality industry. Major representative bodies, including the FHRAI and NRAI, have reported widespread disruptions, claiming that while no official ban exists, suppliers are increasingly unable to meet the demand for commercial cooking gas.
To manage the logistics of this sudden shift and prevent predatory market behaviour, the MoPNG has introduced a rigid hierarchy of supply. The focus is clear, i.e, keep Indian homes running first, followed by critical public infrastructure. To support this, new administrative hurdles have been placed on bookings to ensure that supply isn’t siphoned off by hoarders.