'No Need to Panic': Govt Assures Petrol, Diesel Supply Stable, But Admits LPG Concerns

The LPG supply disruption linked to the West Asia conflict has triggered widespread anxiety among households and businesses across India, leading to panic bookings of cooking gas cylinders and long queues at distribution outlets. 

The government on Friday held a joint inter-ministerial briefing for the third consecutive day to address panic over LPG supplies amid the raging war in West Asia and Iran's choking of the Strait of Hormuz, which has tightened global energy supplies. The LPG supply disruption linked to the West Asia conflict has triggered widespread anxiety among households and businesses across India, leading to panic bookings of cooking gas cylinders and long queues at distribution outlets.

Addressing the concerns over the supply squeeze of the LPG cylinders, both commercial and domestic, the central government assured the "uninterrupted supply to households," claiming that domestic LPG output was up 30 per cent compared to March 5.

"Uninterrupted supply to domestic households has been ensured. Similarly, LPG supplies are also being provided to hospitals and educational institutions. Domestic production of LPG has increased by 30 per cent as of today; compared to March 5, our refineries are currently producing 30 per cent more LPG," said Sujata Sharma, joint secretary in ministry for petroleum and natural gases, during a press brief.

Calling LPG as an "issue of concern" after closure of Strait of Hormuz, the joint secretary however said "a dry-out has not been reported by any of the 25,000 distributors"

“As far as crude oil is concerned, we possess a refining capacity of 258 million metric tons. We are self-sufficient in the production of petrol and diesel; consequently, there is no need to import these fuels into India. All our refineries are currently operating at 100% capacity or higher. The refineries hold adequate inventories of crude oil, and furthermore, supplies are being consistently maintained. The supply of PNG (Piped Natural Gas) to domestic consumers and CNG (Compressed Natural Gas) is being ensured without any interruptions or cuts. Given this situation, there is absolutely no need for panic," she said.

"Furthermore, regarding commercial consumers in our major urban cities and centers—many of whom are currently facing difficulties due to their reliance on LPG supplies—the Government of India is making every effort to address their concerns. We appeal to all such commercial consumers to contact their local CGD (City Gas Distribution) network provider or their designated dealer to obtain a PNG connection,” she added.

She also said that the government was taking action against people indulging in black marketing and hoarding of the LPG.

India relies partly on imports to meet domestic LPG demand, but officials say existing stocks, higher production and supply chain measures are sufficient to meet household needs.