New Delhi, March 11 Amidst panic buying in some parts of the country, the government on Wednesday stated that India has sufficient LPG stocks to meet household cooking gas requirements, even as it intensified efforts to secure alternative supplies to replace volumes disrupted by the West Asia conflict.
While India has been able to source additional crude oil from alternative suppliers to offset disruptions caused by the blockage of the Strait of Hormuz, refinery adjustments have boosted domestic LPG output by about 25%. The push to secure supplies has also resulted in securing at least two LNG cargoes, Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, stated.
The escalating conflict in the Middle East has largely halted shipments through the strait, which was the primary conduit for India's oil, gas, and LPG needs. While India is scrambling to seek alternative crude sources from countries like Russia, LPG and LNG supplies remain constrained. Shortages are affecting businesses nationwide, from restaurants and crematoriums to ceramic units and even the Delhi High Court canteen. Household kitchens are getting fuel, but there are reports of long queues at dealers and the fuel being sold at higher prices in the black market.
At a media briefing – the first of its kind by an oil ministry official since the February 28 conflict – Sharma sought to allay concerns about availability, emphasizing that the government's efforts are primarily focused on maintaining uninterrupted supplies to households.
Sharma stated that India imports about 60% of its LPG requirement, and 90% of this comes through the Strait of Hormuz.
This shortfall necessitates prioritizing household kitchens over commercial usage. However, this has also led to panic buying by common users.
"Feedback suggests that some panic booking and hoarding behavior has been triggered by misinformation," she said. "We have sufficient stocks. There is no need for panic. There is no need for the customer to rush and book cylinders."
The pre-war delivery cycle for a refill of two-and-a-half days remains, according to Sharma, who is in charge of LPG in the ministry.
Giving a full account of the fuel supply scenario, she said that India's daily crude oil consumption is about 5.5 million barrels, 55% of which comes from countries like Saudi Arabia, Iraq, and the UAE via the Strait of Hormuz.
She stated that oil companies have diversified procurement and secured volumes larger than those displaced by the strait blockage after the US and Israel attacked Iran and Tehran's retaliatory action.
"As a result of this diversification, about 70% of our crude imports are now coming from routes outside the Strait of Hormuz, compared with about 55% earlier," she said.
All the oil refineries, which convert crude oil into fuels, are operating at full capacity.
On natural gas, which is used for power, fertilizers, CNG, and household cooking, she stated that out of the total consumption of 189 million standard cubic meters per day, 97.5 mmscmd is produced within the country, and the rest is imported. Out of the imports, about 47.4 mmscmd supply has been affected due to the Strait of Hormuz disruption.
"We are making efforts to procure from alternate routes, and supplies are underway to offset this disruption," she said. "Gas companies have procured LNG cargoes from the new sources, and two LNG cargoes are on their way to the country."
To manage the shortfall, the government has prioritized household cooking and transport fuels, directing refineries to maximize LPG output by cutting petrochemical feedstock streams and barring units, including Reliance Industries Ltd's export-oriented plants, from using LPG as feedstock. Industrial LNG and LPG deliveries have been curtailed to protect over 33 crore households, which account for roughly 86% of LPG consumption.
To manage demand, cooking gas prices were raised for the first time in 11 months, and the minimum interval between subsidised refills was extended from 21 to 25 days.
To deal with the shortfall arising from blockage of supplies through the Strait of Hormuz, she said the government has taken various steps, including maximizing LPG production in refineries by cutting other fuel streams. "Domestic LPG production has increased by 25%, and all this domestic LPG is being directed towards household consumers."
For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions, she said, adding that a three-member committee of executive directors of oil marketing companies – IOCL, HPCL and BPCL – has been constituted to review the allocation to restaurants, hotels and other commercial users.
The committee is consulting with state authorities and industry bodies to finalise a plan to ensure that available LPG is distributed in a fair and transparent manner on LPG prices, she added.
State governments have been advised to crack down on hoarding and black marketing of LPG.
Union Home Secretary held a meeting with Chief Secretaries and Directors General of Police of all states and Union Territories.
States and Union Territories were advised to take strict measures against hoarding of essential commodities and ensure the uninterrupted availability of essential supplies. The government, the officials said, is closely monitoring the evolving situation in West Asia and maintaining continuous coordination among the concerned ministries and agencies.
They reiterated that necessary steps are being taken to ensure energy security, safeguard Indian nationals in the region, maintain the safety of maritime operations and ensure the uninterrupted availability of essential supplies. The government remains committed to keeping the public informed and taking timely measures to protect India's interests during the evolving situation.
India, the world's third-largest crude importer, sources 88% of its oil needs from abroad. It consumes 5.8 million barrels per day, of which 2.5-2.7 million barrels come from Middle East countries like Saudi Arabia, Iraq, and the UAE via the Strait of Hormuz. The chokepoint also carried 55% of India's cooking gas (LPG) and 30% of liquefied natural gas (LNG), used for power, fertilizers, CNG, and household cooking.