The India government on Wednesday said there is no need for panic buying of LPG cylinders, even as reports emerged of restaurants and hotels facing shortages of commercial cooking gas in several parts of the country.
Officials said domestic production of Liquefied Petroleum Gas (LPG) has been increased by 25 per cent to stabilise supply, with priority currently being given to household consumption.
Imports Hit by Strait of Hormuz Closure
Speaking about the situation, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, said India previously depended heavily on imports for its LPG needs.
According to Sharma, about 60 per cent of India’s LPG requirement is imported, and nearly 90 per cent of those shipments typically pass through the Strait of Hormuz.
However, the critical maritime route has been closed by Iran amid the ongoing conflict with the United States and Israel, disrupting supplies.
To address the shortfall, the government directed domestic refineries to increase production.
“Refineries have now increased production by 25 per cent,” Sharma said.
Panic Booking Worsening the Situation
Sharma emphasised that panic booking of LPG cylinders is making the situation appear more severe than it actually is.
She urged consumers not to rush to book cylinders unnecessarily.
“It is panic booking that is making the crisis appear serious,” she said, advising people to avoid “rush booking”.
To prevent diversion of LPG supplies, the government has introduced stricter delivery systems.
Officials said LPG deliveries are being verified using a One Time Delivery Code, and the rebooking cycle has been extended from 21 days to 25 days.
Government Forms Committee to Manage Supply
The government has also set up a special committee to monitor the LPG situation and develop a diversion plan to ensure adequate supply across the country.
This step aims to prevent disruptions in essential sectors while managing the impact of reduced imports.
Crude Oil Supply Remains Stable
Sharma also reassured the public that crude oil supplies remain stable despite the geopolitical tensions.
According to officials, oil inflows currently exceed India’s daily requirement of 5.5 million barrels, with supplies arriving from around 40 countries.
Refineries across India are operating at full capacity, helping maintain fuel availability.
Global LPG Prices Rising
On pricing, Sharma noted that the Saudi benchmark LPG price has increased by around 33 per cent, reflecting the global impact of the crisis.
“This is a global challenge, hence priority is being given to essential sectors,” she said.