The government on Wednesday asked consumers not to panic about gas supplies and conserve energy wherever possible, as the world’s second-largest importer of liquefied petroleum gas (LPG) struggles to meet domestic demand.
The government has invoked emergency powers, ordering refiners to maximise production of LPG and cut sales to industry to avoid a shortage for the 333 million homes with LPG connections.
“The conflict has affected the whole world’s energy supply chain. There is no need to panic or pay attention to rumours,” Prime Minister Narendra Modi said on Wednesday.
The government’s measures have increased local LPG output by 25 per cent, said Sujata Sharma, a joint secretary in the ministry of petroleum and natural gas, at a media briefing — the first on record by an oil ministry official since the conflict broke out on February 28.
Despite the steps, restaurants, hotels, and industries across sectors are beginning to feel the strain from the tighter supplies of LPG, mainly used as cooking fuel.
“Panic booking (of LPG cylinders) and hoarding behaviour have been driven by misinformation,” Sharma said.
India has enough LPG stocks to fully meet household cooking gas requirements, even as it stepped up efforts to secure alternative supplies to replace volumes disrupted by the West Asia conflict, she added.
“There is no need for the customer to rush and book cylinders. The pre-war delivery cycle for a refill of two-and-a-half days remains,” said Sharma, who is in charge of LPG in the ministry.
India’s crude oil, LPG, and liquefied natural gas (LNG) supplies have been disrupted due to global shipping constraints after the US and Israel’s war with Iran halted traffic through the Gulf and the Strait of Hormuz.
India consumed 33.15 million tonnes of cooking gas last year, with imports accounting for about 60 per cent of demand. About 90 per cent of those imports came from West Asia. India also imports about half of its 190 million standard cubic metres per day (mscmd) of gas consumption.
Sharma said LNG imports of 47.4 mmscmd have been hit due to supply constraints and force majeure by its top supplier Qatar. India has begun diverting gas supplies from non-priority sectors to key users.
India is securing crude and LNG from alternative sources with two LNG cargoes already on their way, Sharma said. Indian refiners have bought millions of barrels of Russian oil floating on the high seas after Washington granted a 30-day sanctions waiver.
Most Indian refineries are operating at full capacity, she said.
“The West Asia conflict has posed challenges for the world, but India’s fuel demand is being met,” she added.
A three-member committee of executive directors of oil marketing companies — Indian Oil, HPCL and BPCL — has been constituted to review the allocation to restaurants, hotels and other commercial users.
State governments have been advised to crack down on hoarding and black marketing of LPG.