The closure of the Strait of Hormuz by Iran has Notably impacted the supply of Liquefied Petroleum Gas (LPG) in India. In response to this logistical challenge, the Ministry of Petroleum and Natural Gas has announced a series of emergency measures, while sujata Sharma, Joint Secretary (Marketing and Oil Refinery), stated on Thursday that India imports approximately 60% of its LPG requirements. Crucially, about 90% of these imports pass through the Strait of Hormuz. The current disruption has prompted the government to prioritize domestic supply and authorize the use of alternative fuels to mitigate the shortage.
Impact of Strait of Hormuz Closure on Imports
According to official statements, India's heavy reliance on LPG imports makes the maritime blockade a critical issue. The Ministry explained that since the vast majority of imported gas traverses the Strait of Hormuz, the closure has directly affected the supply chain, while sujata Sharma emphasized that while the situation is challenging, the government is making every effort to ensure that domestic consumers don't face a shortage. Efforts are also being accelerated to explore and implement alternative energy options to reduce long-term dependency on this specific import route.
Allocation of 14.8 Crore Liters of Kerosene
To provide immediate relief during the LPG crisis, the central government has increased the allocation of kerosene to various states. Under normal circumstances, the government provides 1 lakh kiloliters (10 crore liters) of kerosene every three months. 8 crore liters) has been sanctioned through a new order issued today. 8 crore liters. This move is intended to provide an alternative cooking and heating fuel source in regions where LPG availability might be constrained due to the ongoing supply issues.
Temporary Permission for Coal and Bio-fuel Usage
In a significant policy shift to manage commercial demand, the government has allowed hotels and restaurants to use coal and bio-fuels for a period of one month. According to the Ministry of Petroleum and Natural Gas, this decision has received the necessary clearance from the Environment Department. By allowing the hospitality sector to switch to these alternative fuels temporarily, the government aims to divert more LPG for domestic household use. This measure is expected to reduce the immediate pressure on LPG stocks while the import situation remains volatile.
Mandatory Increase in Domestic LPG Production
The Ministry has invoked the Essential Commodities Act to boost domestic LPG output, while an official order has been issued to all oil refineries across the country, directing them to maximize their LPG production levels. According to Sujata Sharma, these measures have already shown results, with domestic production increasing from 25% to 28% of total refinery output. The government is focusing on optimizing internal resources to compensate for the reduction in imported volumes and to maintain a steady flow of gas to the bottling plants.
Status of Retail Outlets and Daily Deliveries
Providing data on the current energy consumption and distribution, officials noted that India consumes approximately 55 lakh barrels of oil daily. In the LPG segment, about 50 lakh cylinders are delivered across the country every day. The Ministry highlighted that India possesses a vast network of nearly one lakh retail outlets. Sujata Sharma confirmed that despite the logistical hurdles in the international waters, there have been no reports of 'dry outs' at any retail outlets across the country, while the government continues to monitor the distribution network to ensure that the supply chain remains functional.