NEW DELHI: India is producing much more LPG than it needs to import, said the petroleum ministry on Thursday. As per the ministry’s press note, in addition to domestic production, 800 TMT of assured inbound LPG cargoes have already been secured and are en route from the United States, Russia, Australia and other countries.
The ministry said that, following the LPG Control Order issued by it, domestic refinery production has been ramped up by 40%, bringing daily LPG output to 50 TMT (more than 60% of the requirement) against a total daily requirement of around 80 TMT. The net daily import requirement has consequently come down to only 30 TMT — meaning India is now producing much more than it needs to import.
“Approximately one full month of supply is firmly arranged, with additional procurement being finalised continuously. Oil companies are successfully delivering over 50 lakh cylinders every day,” said the ministry in a press note.
Due to the ongoing war in West Asia, the movement of vessels has been reduced at the major chokepoint, the Strait of Hormuz. India is dependent on imports to meet around 60% of its LPG requirement, and nearly 90% of these imports come through this route. In effect, roughly 55% of India’s LPG consumption volumes are currently at risk.
To ensure seamless supply to domestic users, the government has curtailed supplies to commercial and industrial consumers. Moreover, the ministry has urged people to adopt PNG connections wherever feasible. The government has also introduced a new rule mandating time-bound clearance of installation applications, along with stopping LPG cylinder supply to households or colonies where PNG infrastructure is already in place.
The government said cylinder demand had surged to 89 lakh due to panic ordering by consumers, but has now come down to around 50 lakh cylinders per day.
On crude oil, which is refined into petrol, diesel, and other products, the ministry said supplies for the next 60 days have already been secured by Indian oil companies. It further added that India has a total reserve capacity of 74 days, while the current stock cover stands at around 60 days (including crude stocks, product stocks, and strategic reserves stored in caverns), even as the conflict entered the 27th day.
“Nearly two months of steady supply is available for every Indian citizen regardless of what happens globally. The next two months of crude procurement have also been secured. India is completely secure for many months, and the quantity in strategic cavern storage becomes secondary in such a supply situation,” said the ministry.
