Indian refineries increase LPG production by 36 per cent to plug import gap

India’s domestic refineries have stepped up LPG production as much as 36 per cent 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 on Monday.  

"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.

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. 

Booking intervals have been revised to 25 days in urban areas and up to 45 days in rural areas to ensure equitable distribution.

Of the two Indian-flag LPG carriers that crossed the Strait of Hormuz on March 14 carrying about 92,712 MT of LPG, vessel 'Shivalik' reached Mundra Port at around 5 p.m. on Monday, while vessel 'Nanda Devi' is expected to reach early on Tuesday morning.

State governments are undertaking enforcement measures to prevent hoarding and black marketing of petrol, diesel and LPG. Raids are being conducted in several states, including Uttar Pradesh, Haryana, Andhra Pradesh, Madhya Pradesh, Assam, and Mizoram, to check the hoardings and black marketing of LPG.

Officials of PSU oil marketing companies have also conducted surprise inspections at more than 1,100 retail outlets and LPG distributorships to ensure smooth supply and prevent irregularities.

An additional allocation of 48,000 KL of kerosene has been provided to states and UTs, and alternative fuels such as kerosene and coal have been made available to reduce pressure on LPG demand.

All refineries are operating at high capacity and maintaining adequate crude oil inventories. India remains self-sufficient in petrol and diesel production, and no imports of these fuels are required to meet domestic demand, the statement explained.

 No cases of fuel dry-outs have been reported at retail outlets by OMCs, and supplies of petrol and diesel continue to be maintained regularly. Citizens are advised not to resort to panic buying as adequate stocks of petrol and diesel are available, the statement said.

 Priority sectors continue to receive protected gas supplies, including 100 per cent supply to PNG and CNG, while supplies to industrial and commercial consumers are being regulated at around 80 per cent.

Commercial LPG consumers in major cities and urban areas are encouraged to switch to PNG, and establishments such as hotels, restaurants, hospitals and hostels can obtain PNG connections through authorised City Gas Distribution (CGD) entities. Consumers can apply for PNG connections through email, customer portals, letters or call centres of CGD companies, and connections can be provided quickly where pipeline networks already exist, the statement said.

Several CGD companies are offering incentives to promote PNG connections, including free gas worth Rs 500 for domestic consumers by Indraprastha Gas Ltd. and GAIL Gas Ltd., waiver of registration charges of Rs ₹500 for domestic PNG consumers and security deposits for commercial consumers by Mahanagar Gas Ltd., and waiver of security deposits for all commercial connections by BPCL.

Picture Courtesy: IANS