India Prolongs LPG Booking Cycle for Rural Households to 45 Days Amid Supply Disruptions

LPG Shortage Hits Indian Markets: Oil Ministry Implements Measures

Indian Oil Ministry has increased the lock-in period for rural consumers to 45 days, up from 25 days, in an effort to mitigate the ongoing liquified petroleum gas (LPG) shortage. This decision comes as domestic supplies have been affected due to the closure of the Strait of Hormuz, a critical shipping route.

According to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, the country is importing LPG from multiple sources to meet demand. While no dry out has occurred on the distribution side, there has been a significant increase in booking numbers due to panic. To address this, the oil ministry has announced that Oil Marketing Companies (OMCs) will release some commercial cylinders in coordination with state governments.

Petrol and Diesel Prices Remain Unaffected

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Despite the LPG shortage, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri assured that there is no shortage of petrol, diesel, kerosene, ATF, or fuel oil in the country. Petrol and Diesel Rates have not been affected by the shortage.

Measures to Ease Pressure on LPG Channels

To ease pressure on LPG channels, the oil ministry has announced the following measures:

• 20% of average monthly commercial LPG requirement will be allocated to industrial and commercial users in coordination with state governments.
• 48,000 kiloliters of kerosene will be released to states in addition to the 1 lakh kiloliters given earlier.
• The Environment Ministry has advised state pollution control boards to allow the use of biomass, coal, and kerosene for the hospitality and commercial segment for 1 month until the situation eases.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Production of LPG Increases

The country's production of LPG has increased by 28% as of March 12 since the government passed orders to refineries to maximise their LPG production on March 5.