India has ordered refineries to boost LPG production and prioritise supply for households and essential sectors to prevent cooking gas shortages amid global fuel disruptions.
Amid Global Energy Disruptions, Govt Asks Refineries to Increase LPG Production (Source: X)
LPG Distribution Update in India: In the wake of fuel supply disruption issues, the Ministry of Petroleum and Natural Gas has issued a control order asking refineries and petrochemical units to step up the production of LPG. This order has asked these units to divert key hydrocarbon supplies into the LPG supply chain to ensure the uninterrupted supply of cooking gas in the country.
The Petroleum Ministry said refineries and petrochemical plants have been instructed to ramp up LPG production and redirect important hydrocarbon streams toward the LPG pool. The move is aimed at strengthening domestic supply and ensuring that households across the country continue to receive cooking gas without disruption.
Officials believe the step will help stabilise LPG availability at a time when geopolitical tensions are affecting global fuel supply chains.
The ministry has also stated that the application of the provisions of the Essential Commodities Act of 1955 has resulted in the formalisation of a prioritisation policy for the allocation of natural gas. The revised guidelines are expected to address the current supply concerns and ensure sufficient fuel availability for critical sectors.
Under the new system, households using Piped Natural Gas and the transportation sector using Compressed Natural Gas will get 100% assured supplies. Other sectors will get limited supplies based on their average gas consumption in the last six months.
Meanwhile, some of the prominent oil companies of the nation, namely Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, are taking steps to enhance the production of LPG while ensuring its priority allocation to the people of the nation. These oil companies claimed to be working in close coordination with the government to ensure the availability of adequate stocks of LPG, especially for the people of the nation.
In a joint statement released on Tuesday, the two firms announced that the ministry has taken the initiative to improve the production and availability of LPG. “In light of the current geopolitical issues being faced in the supply of fuels and the constraints being faced in the supply of LPG, the Ministry has taken the step for higher LPG production and securing it for supplying to the domestic customers. Along with the supply to all the domestic customers, it has also been decided that the supply will be made as per the requirement to the essential non-domestic sectors such as hospitals, educational institutions, etc. For the supply of LPG to the other non-domestic sectors, a committee comprising three Executive Directors of Oil Marketing Companies has been constituted to consider the representations and prioritize the LPG supply," the joint statement released by the two firms read.
The government hopes that these steps will ensure the stability of the supply of LPG and that the essential sectors will be able to access the fuel despite the geopolitical issues that may occur in the supply of fuels.
