Domestic production of Liquefied Petroleum Gas rose 30 per cent on Friday as the government moved to strengthen fuel availability and urged consumers not to panic over supplies, according to the petroleum ministry.
The increase comes at a time when the government said refineries are running at full capacity and inventories remain sufficient to meet demand for major fuels. Officials said supplies of cooking gas and transport fuels continue without disruption.
Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, said country’s refining capacity stands at 258 million metric tonnes and refineries are currently operating at or above 100 per cent utilisation levels.
“As far as crude oil is concerned, we possess a refining capacity of 258 million metric tons. We are self-sufficient in the production of petrol and diesel; consequently, there is no need to import these fuels into India. All our refineries are currently operating at 100 per cent capacity or higher. The refineries hold adequate inventories of crude oil, and furthermore, supplies are being consistently maintained,” she said in a media briefing.
The government also said supplies of Piped Natural Gas to households and Compressed Natural Gas for vehicles are being maintained without cuts.
“The supply of PNG (Piped Natural Gas) to domestic consumers and CNG (Compressed Natural Gas) is being ensured without any interruptions or cuts. Given this situation, there is absolutely no need for panic…Furthermore, regarding commercial consumers in our major urban cities and centers—many of whom are currently facing difficulties due to their reliance on LPG supplies—the Government of India is making every effort to address their concerns. We appeal to all such commercial consumers to contact their local CGD (City Gas Distribution) network provider or their designated dealer to obtain a PNG connection,” Sharma said.
Other measures
With LPG bookings surging to 75.7 lakh, sharply higher than the pre-war average of 55.7 lakh, this indicates panic booking by consumers.
Authorities have said uninterrupted supply to households is being ensured, while commercial cylinder distribution has been left to state governments to prioritise based on local needs.
Amid rising concern in some regions, the chief ministers of Yogi Adityanath and Bhajan Lal Sharma have reviewed the situation in their respective states and monitored supply arrangements.
To support alternative fuel availability, the government said an additional allocation of 48,000 kilolitres of Kerosene has been approved.
At the same time, Coal India Limited has issued orders to activate other forms of fuel to help industries and commercial establishments manage supply disruptions.
The government also warned against hoarding of LPG cylinders and said that action is being taken against black marketing of the same.
The oil ministry official reiterated that oil companies are increasing production and adjusting allocations to stabilise supplies as demand rises.
The great LPG panic
India has faced a short-term shortage of Liquefied Petroleum Gas in recent days after supply disruptions tightened availability of commercial cylinders used by restaurants and small businesses.
The shortage has hit the hospitality sector in several cities, with restaurants cutting operating hours, trimming menus or temporarily shutting kitchens due to lack of cooking gas supplies. Industry representatives told the publication that commercial LPG deliveries slowed in multiple regions, affecting food outlets and cloud kitchens.
To maintain household availability, oil companies prioritised domestic consumers, which tightened supplies for commercial users. Authorities also directed refiners to maximise LPG production and divert supplies where required to ensure households continue to receive cylinders without disruption.
The pressure has also spilled over to alternative fuels. In some urban areas, higher demand for Piped Natural Gas from commercial establishments increased after LPG shortages, putting additional strain on city gas distribution networks.
