In response to ongoing geopolitical disruptions affecting fuel supplies, the Ministry of Petroleum & Natural Gas has directed oil refineries to boost LPG production, with the additional output earmarked for domestic consumption. 

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the ministry said in an advisory.

The minimum gap for booking a domestic LPG refill has been increased to 25 days from the current 21 days, a move aimed at preventing hoarding and ensuring equitable distribution of cylinders. 

“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing. Non domestic supplies from imported LPG is being prioritised to essential non-domestic sectors such as Hospitals and Educational institutions,” it added.

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Committee formed to review non-domestic supply requests

Additionally, a committee comprising three Executive Directors from Oil Marketing Companies (OMCs) has been set up to review requests and representations for LPG supply. 

“For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” the ministry said.

Household LPG consumption and supply status

Average households consume 7-8 LPG cylinders of 14.2 kg in a year and should normally not need a refill in less than six weeks. The oil companies have an adequate stock of LPG. The government is closely monitoring the evolving global energy situation and has taken steps to ensure that supply chains remain stable, news agency PTI reported citing government sources.

The widening conflict in the Middle East, which began on February 28 when the United States and Israel carried out strikes on Iran, followed by retaliatory attacks from Tehran, has disrupted energy flows through the Strait of Hormuz.

Commercial LPG supply disrupted in Kolkata

The escalating war in West Asia is threatening operations of restaurants and bakeries in Kolkata. Businesses that rely on LPG faced uncertainty on Monday after the Union Ministry of Petroleum and Natural Gas suspended the distribution of non-domestic LPG cylinders. 

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In a communique sent to oil marketing companies, the ministry directed an immediate stop to the distribution of non-domestic non-exempted (NDNE) LPG cylinders until further notice. However, commercial LPG supply to hospitals will continue.

“In view of the worsening war situation and the resulting disruption in imports, it was decided that no dispatches of NDNE… shall be effected until further notice,” the ministry said in its letter.