The Central Government clearly stated on Thursday that the supply of petroleum and LPG in the country is completely secure and under control. The government has appealed to citizens to disregard the “misleading information and propaganda” being circulated on social media, the objective of which is to create unnecessary panic.
60 Days of Stock Available
According to the Ministry of Petroleum, India possesses a total storage capacity of 74 days, of which approximately 60 days’ worth of stock is currently available. This includes crude oil, petroleum products, and underground strategic reserves (caverns). The Ministry noted that, even on the 27th day of the Middle East crisis, there is absolutely no shortage of petrol, diesel, or LPG anywhere in the country.
The government affirmed that a continuous supply of approximately two months is available for every Indian citizen, regardless of global circumstances. Furthermore, the procurement of crude oil for the next two months has already been secured. The Ministry clarified that while some countries are facing situations involving massive fuel price hikes, rationing, “odd-even” restrictions, and petrol pump closures, India requires no such emergency measures.
Relief for Petrol Pump Owners
The government acknowledged that incidents of panic-buying of fuel were reported in certain locations, but attributed these occurrences to misleading videos being circulated on social media. Despite this, fuel was made available to all consumers, and oil companies ramped up supplies by operating their depots overnight. Providing relief to petrol pump owners, the government has extended the credit limit from one day to three days to ensure that no petrol pump faces a fuel shortage due to a lack of working capital.
The Ministry further stated that, notwithstanding the prevailing situation in the Strait of Hormuz, India is receiving a greater volume of crude oil from its more than 41 global suppliers than before. All of the country’s refineries are currently operating at over 100% capacity, and the supply of crude oil for the next 60 days has already been secured.
LPG Supply Also Completely Secure
The government has also denied the existence of any shortage regarding LPG. According to the Ministry, domestic production has been increased by 40%, bringing daily output to 50,000 metric tonnes (TMT)—which accounts for over 60% of the total requirement. Consequently, the daily requirement for imports has dropped to 30 TMT. Furthermore, consignments of 800 TMT of LPG from several countries—including the USA, Russia, and Australia—are already en route and are scheduled to arrive at the country’s 22 import terminals.
The government has stated that an LPG supply sufficient for approximately one month is fully assured, and additional procurement efforts are continuously underway. Oil companies are currently supplying over 5 million cylinders daily. To curb black marketing and hoarding, the allocation of commercial cylinders has been increased by up to 50%.
Promotion of PNG, but No Impact on LPG
The government is also actively promoting Piped Natural Gas (PNG), as it is more affordable, safer, and environmentally friendly. India domestically produces 92 million standard cubic meters per day (MMSCMD) of gas, whereas the total requirement stands at 191 MMSCMD; this implies that India is significantly less dependent on imports for gas compared to LPG. The City Gas Network has expanded from covering 57 geographical areas in 2014 to over 300 areas today, and the number of domestic PNG connections has surged from 2.5 million to over 15 million. The Ministry has clarified that the promotion of PNG does not signify that LPG is being phased out; the supply of LPG remains completely secure.
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