The war in West Asia disrupted fuel supplies around the world and caused instability in the oil market. In a statement on Sunday, the center said it was taking steps to ensure sufficient supplies of fuel and gas during the closure of the Strait of Hormuz. Amid the LPG crisis, the Ministry of Petroleum and Natural Gas said, “Domestic production of LPG from refineries has been increased to support domestic consumption.”
A media briefing was held on Monday with officials from the Ministries of Oil and Gas, Ports, Shipping and Waterways and External Affairs in the wake of the worldwide energy supply shortage. The discussion focused on fuel availability, naval operations, support provided to Indian nationals in the region and measures being taken to maintain stability in these sectors.
“Gas supply to the urea plants, initially reduced to around 60%, was gradually increased to 65% and further expanded to 75-80% through alternative measures. This increased urea production by 12,000-15,000 tonnes per day, reducing the monthly production loss from 9-10 LMT to around 6-7 LMT,” the press release said. The authorities have suggested that domestic production of LPG from refineries should be increased to support domestic consumption.
As a result of the ongoing conflict in the Middle East, cylinder prices of 14.2 kg domestic and 19 kg commercial liquefied petroleum gas (LPG) cylinders increased by ₹60 a ₹144, respectively
Domestic and commercial LPG price in major Indian cities
Below is a list of domestic and commercial LPG cylinder prices in key Indian cities.
The government is pushing for the expansion and adoption of PNG infra
The Ministry of Petroleum has recognized that consumers with 100% domestic piped natural gas (PNG) and CNG supply have priority. Supply to grid-connected industrial and commercial consumers is maintained at around 80% of their average consumption, the company said. The expansion of PNG distribution networks is accelerating. The government has asked CGD entities to prioritize PNG connections for commercial establishments such as restaurants, hotels and canteens.
To encourage domestic and commercial connections and adoption of PNG, CGD companies including IGL, MGL, GAIL Gas and BPCL are offering incentives. A few days ago, the government reduced the excise duty on petrol and diesel by ₹10 per liter and an export duty of Rs ₹ 21.5 per liter for diesel and ₹29.5 per liter of Aviation Turbine Fuel (ATF) to ensure availability in the domestic market.
According to a Reuters report, companies sailing through the Strait of Hormuz use a variety of tactics to avoid detection, including turning off their AIS tracking transponders and sailing at night to be less visible. Two Indian-flagged LPG vessels passed through the strait on Saturday.
