No LPG shortage, no dry-out at dealers, says Oil Ministry as panic buying pushes bookings to 75.7 lakh

LPG bookings have surged to 75.7 lakh from a pre-war average of 55.7 lakh, the Oil Ministry said on 13 March, attributing the spike to panic booking amid the ongoing crisis. 

The government, however, urged consumers not to stock up, assuring that there will be no supply disruption.

“There is no need for panic booking; no dry out at any LPG dealer,” Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said at a media briefing today.

She said that the supply of Piped Natural Gas (PNG) to domestic consumers and Compressed Natural Gas (CNG ) is being ensured without any interruptions or cuts. "Given this situation, there is absolutely no need for panic,” she added.

The official said petrol and diesel were available in adequate quantities at all petrol pumps. However, she added that LPG remained a matter of concern, though no dry-out had been reported at any of the country’s 25,000 distributors. She also appealed to citizens not to believe rumours and to refrain from panic buying.

Govt assures domestic, commercial customers of supply

Sharma added that the government had ensured uninterrupted LPG supply to domestic households, while deliveries were also being made to hospitals and educational institutions. She said domestic LPG production had increased by 30%, adding that refineries were currently producing 30% more LPG compared with 5 March.

Sharma said commercial LPG cylinders had been placed at the disposal of state governments to facilitate priority distribution. She added that the Centre had asked states to determine priority criteria and ensure that the cylinders reach the intended consumers.

Further, commenting on the status of commercial consumers in major urban cities and centres, many of whom are facing difficulties due to their reliance on LPG supplies, Sharma said the government was “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 added.

‘India self-sufficient in producing petrol, diesel’

Sharma further said India was “self-sufficient” in producing petrol and diesel, and that there was no need to import them.

“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% capacity or higher,” she stated.

Sharma added that refineries hold adequate crude oil inventories and that supplies areconsistently maintained.

Why is India facing LPG, LNG and oil shortage?

The United States and Israel's attacks on Iran, followed by Tehran's retaliation, have led to the closure of the Strait of Hormuz, a critical waterway which transports around 85-90% of India's LPG imports from West Asia, including Saudi Arabia and Qatar.

According to the Oil Ministry, to create a buffer against regional disruptions, India has been steadily reducing its dependence on the Strait of Hormuz, with nearly 70% of its crude oil imports now arriving via alternative routes.

(With inputs from Agencies)