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India Boosts LPG Supply to Homes Amid Global Turmoil, Says FM Sitharaman

Finance Minister Nirmala Sitharaman stated that the entire 25% increase in domestic LPG production is being directed to households to ensure cooking gas supply. She highlighted that while 65% of India's LPG is imported, with 90% of that coming via the volatile Strait of Hormuz, the government is successfully managing supply chains. Refineries have maximized output to address import shortages, and specific vessels have safely transported cargo amid the West Asia conflict. The government has also increased capital outlay for infrastructure to Rs 12.2 lakh crore to spur growth and job creation.

Key Points: FM: All Increased Domestic LPG Production Going to Households

  • Entire 25% domestic LPG increase for households
  • 65% of India's LPG is imported
  • Govt ensures supply despite Strait of Hormuz risks
  • Infrastructure outlay raised to Rs 12.2 lakh crore
3 min read

Entire increase in local LPG production is going to households: FM Sitharaman

Finance Minister Nirmala Sitharaman assures no LPG shortage, highlights increased domestic production and secure imports despite Middle East conflict.

"We're able to stand up and face such situations. - Nirmala Sitharaman"

New Delhi, March 17

Finance Minister Nirmala Sitharaman clarified on Tuesday that the entire 25 per cent increase in domestic LPG production is being supplied to households as cooking gas.

Speaking in the Rajya Sabha, the Finance Minister also highlighted that 65 per cent of the total LPG consumed in India is imported, and as much as 90 per cent of this quantity is shipped through the Strait of Hormuz.

The government is ensuring a steady flow of LPG even in these turbulent times, she said, and further clarified that there is no energy shortage in India today.

In order to address the shortage from imports, refineries have maximised their output, she noted.

Talking about the economy, she said that despite the war raging in the Middle East, India has been able to maintain its economy. "We're able to stand up and face such situations," she remarked.

She went on to say that it is the position of the Indian economy today that gives it the strength to meet unforeseen problems.

In addition, the capital outlay for infrastructure projects such as highways, ports and railways that spur growth and create jobs in the economy has been increased to Rs 12.2 lakh crore, she pointed out.

India's domestic refineries have stepped up LPG production to fill the gap in imports caused by the disruption due to the closure of the Strait of Hormuz because of the Iran war, according to a statement issued by the Ministry of Petroleum and Natural Gas.

"LPG supply continues to be monitored in view of the prevailing geopolitical situation. No dry-outs have been reported at LPG distributorships. Delivery Authentication Code (DAC) coverage has been expanded from 53 per cent before the crisis to about 72 per cent to prevent diversion of cylinders at the distributor level," the statement said.

Two Indian-flagged LPG carriers safely crossed the Strait of Hormuz before arriving in India on March 16 and 17, as the government continues to closely monitor maritime operations in the Persian Gulf region amid the evolving geopolitical situation in West Asia. MT Shivalik and MT Nanda Devi - carrying approximately 92,712 metric tonnes of LPG - crossed the Strait of Hormuz early Friday.

Major ports are prioritising berthing for LPG vessels to ensure the timely discharge of cargo and continuity in energy supply. Over the past few days, six LPG vessels have been received at major Indian ports. Additionally, ports are providing safe anchorage areas for vessels loaded with cargo bound for the Gulf region that are currently unable to transit due to prevailing conditions.

The online bookings of LPG cylinders have increased from about 84 per cent to around 90 per cent, which will enable a more orderly distribution of the cooking gas to households.

- IANS

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Reader Comments

R
Rohit P
Good to hear about the increased domestic production. But the real issue is the price! Ujjwala subsidy is helpful, but middle-class families are still feeling the pinch. Hope this increased supply translates to some price stability or relief.
S
Suresh O
The fact that 65% is imported and 90% of that comes through Hormuz is a major strategic vulnerability. We need to accelerate our move towards renewable energy and reduce this dependency. Atmanirbhar Bharat should focus on energy security too.
A
Ananya R
The increase in online bookings to 90% is a smart move. It reduces chaos at distributors and ensures a fair system. Hope the DAC coverage expansion effectively stops cylinder diversion. Every family should get their rightful share.
D
David E
Interesting read from an Indian perspective. The logistical details about port prioritization and safe anchorage show a well-coordinated response to a global crisis. Other nations could learn from this operational focus.
K
Karthik V
While managing the immediate crisis is good, the long-term solution lies in infrastructure investment mentioned - Rs 12.2 lakh crore. Better ports, railways, and highways will make our supply chains more resilient. Jai Hind!

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