India Secures Fuel Supply, Restores 70% Commercial LPG Amid Global Tensions

Speaking at a joint inter-ministerial briefing, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), said the country currently maintains adequate crude inventories, with fuel supplies secured for the next two months. She added that refineries are operating at full or above capacity, and domestic LPG production has increased by around 20 per cent.

Highlighting the impact of global tensions, she noted that crude oil, LPG and LNG supplies were affected and international prices have risen. However, the government has taken multiple calibrated measures to manage the situation effectively and ensure stability in domestic supply.

"As you all know, we are currently in a war-like situation, and due to the ongoing conflict in the Middle East, our supplies have been affected. Crude oil, LPG, and LNG have all been impacted. Crude prices have increased, and the prices of other products have also risen in international markets. However, the Government of India has taken several important decisions at multiple levels to effectively manage this situation. As of today, we have sufficient crude inventories, and supplies for the next two months have already been secured. The situation is comfortable with respect to LPG and PNG as well. Our refineries are operating at 100% or even above capacity, and domestic LPG production has increased by 20%," Sujata Sharma said.

She further said that given India's heavy dependence on LPG imports--nearly 90 per cent of which were routed through the Strait of Hormuz--the government prioritised domestic consumers. Commercial LPG supplies were temporarily curtailed and later restored in phases, gradually increasing from 20 per cent to 70 per cent.

"As you know, India has a high dependency on LPG imports, and about 90% of these imports were coming through the Strait of Hormuz. Therefore, the Government of India decided to prioritise domestic consumers. In this process, commercial supplies were temporarily halted. After that, through calibrated decisions, 20% of commercial supplies were restored, followed by an additional 10% to support the expansion of the PNG network. Later, this was increased to 50%, and today it has been raised to 70%," said Sujata Sharma.

Sharma informed that as part of these efforts, around 30,000 tonnes of commercial LPG have been supplied since March 14. Priority has been given to essential segments including restaurants, hotels, industrial canteens, migrant workers, and key sectors such as steel, automobile, textiles, chemicals and plastics. Additionally, nearly 30,000 small 5-kg cylinders have been distributed to migrant labourers.

The government maintained that these steps have helped stabilise supply chains and ensure the availability of essential fuels across the country.

"As a result of these efforts, approximately 30,000 tonnes of commercial LPG have been supplied to commercial consumers from March 14 until yesterday. When these decisions were taken, it was ensured that priority would be given to restaurants, dhabas, hotels, industrial canteens, and migrant labour. Additionally, the latest order clearly states that priority sectors include steel, automobiles, textiles, dyes, chemicals, and plastics. Around 30,000 small (5 kg) cylinders have also been distributed to migrant workers under the Free Trade LPG (FTL) category," Sharma said.

- ANI