New Delhi: The Ministry of Petroleum and Natural Gas has constituted a three-member committee to review the availability and allocation of liquefied petroleum gas (LPG) for commercial segments such as restaurants, hotels and automobiles, amid concerns over global supply uncertainties.
According to the ministry, the panel will examine the LPG requirements of these sectors and explore ways to ensure that a portion of the available supply can be allocated to them. The committee will comprise executive director–level officials from the country’s three state-run oil marketing companies–Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
The government has, however, placed priority on ensuring an uninterrupted LPG supply for domestic cooking needs. To prevent hoarding and curb possible black marketing, authorities have already implemented a 25-day gap between successive LPG cylinder bookings for households.
Imported LPG supplies are being largely reserved for critical non-domestic sectors such as hospitals and educational institutions.
The ministry also noted that geopolitical developments affecting global fuel trade have prompted precautionary measures. In response to potential supply constraints, refineries have been instructed to increase LPG output and channel the additional production toward domestic consumption.
Officials familiar with the situation indicated that India’s current LPG availability remains stable and there is no immediate shortage. However, uncertainty surrounding shipping routes such as the Strait of Hormuz has led the government to prioritise supplies for household cooking as a precaution.
Earlier, refiners were directed to give priority to propane and butane feedstock for LPG production and supply it exclusively to the three public sector oil marketing companies.
The government has since expanded this directive, asking all refineries and petrochemical complexes, including those operating in special economic zones, to maximise the use of C3 and C4 hydrocarbon streams, such as propane, butane, propylene and butenes, to boost LPG production.
