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LPG Shortage Report: A major oil and gas crisis has arisen in West Asia due to tensions between the US and Iran, along with the blockade of the ‘Strait of Hormuz’, a vital waterway for meeting global oil demand. The repercussions of this energy crisis are felt in many countries around the world and India is no exception. Although there has been some shortage of LPG at the domestic level, significant steps taken by the government have helped mitigate the impact of the crisis.

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A sensational report published by Nikkei Asia recently claimed that India, the world’s third largest consumer of LPG, is facing a shortage of 400,000 barrels per day. The government has now issued a statement in response to the report; Sujata Sharma, Joint Secretary, Ministry of Petroleum, has clarified that there is no shortage of LPG in the country, on the contrary, there has been an increase in domestic LPG production.

Steps to overcome LPG crises

Referring to a Nikkei Asia report, Sujata Sharma, Joint Secretary, Ministry of Petroleum, issued a statement and asserted: “We are not facing any shortage of LPG; on the contrary, domestic LPG production has recorded an increase. The production level has been increased to approximately 46,000 to 47,000 tonnes. Cooking gas supply is stable. In the last three days, 13.34 lakh domestic LPG was sold against 1.32 lakh bookings. Cylinders have been delivered.”

What does the Nikkei Asia report say?

Interestingly, a report by ‘Nikkei Asia’ referred to figures from ‘Kpler’. According to these figures, India’s LPG imports in April stood at 3,77,620 barrels per day. Which was significantly lower than February’s import of 8,51,870 barrels per day.
The report further states that India has also tried to diversify its sources of LPG procurement; For this, supplies have also been purchased from Iran, Australia, Argentina and Chile. These countries collectively supplied 43,000 barrels of LPG per day in April, compared to ‘zero’ in February. This is far less than the supply of 678,000 barrels per day from the four major Middle Eastern exporting countries; Moreover, geographical distance is also an important factor in this. The report also highlighted that supplies from Australia typically take 20 days to reach India, while stocks from Argentina and the US can take 35 to 45 days. During the month of April, India received an average of 149,000 barrels of gas per day from these sources.

Steps taken by Govt

In the wake of the LPG crisis, the government has taken significant measures to meet the LPG requirement of domestic consumers; This has helped to reduce the impact of this shortage. Firstly, the government ordered an increase in domestic LPG production and at the same time changed the gas cylinder booking schedule. Moreover—instead of relying solely on Middle-Eastern nations, the government expanded sources of imports under its ‘Plan B’ (Modi government’s Plan-B) policy; This decision has brought great relief to the customers.

Oil companies’ reaction to the shortage

Although the government has dismissed reports of severe shortage of LPG in the country, oil companies have explained the situation regarding shortage of petrol and diesel. In a post on social media platform ‘Twitter’, HPCL clarified that reports of disruption in oil supply are misleading. HPCL assured that full care is being taken to ensure smooth supply and uninterrupted operations at its retail outlets.

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