‘No need for panic booking’: Centre assures 100% domestic LPG supply amid Iran war’s energy crisis

At an inter-ministerial briefing, the Centre on Wednesday urged the public to not panic and assured 100 per cent domestic LPG supplies.

In the wake of energy supply disruptions due to the ongoing war in West Asia, the Centre has ordered domestic suppliers to ramp up gas production and domestic production has risen 25 per cent as a result, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said at the briefing.

Sharma acknowledged that there has been panic among people and there have been reports of hoarding but said there was no shortage of LPG in the country.

“I want to clarify that our normal delivery cycle for domestic LPG remains around two-and-a-half days, so there is no need for customers to rush-book the cylinders. There is no need for panic booking,” said Sharma.

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As a temporary demand measure, Sharma said that the minimum gap between LPG bookings has been increased from 21 days to 25 days.

Giving a breakdown of India’s LNG supplies, Sharma said India procures around 51 per cent domestically and the rest from abroad.

Among the imports, around 90 per cent of supplies come from the Strait of Hormuz, said Sharma.

Due to the ongoing American-Israeli war on Iran,
tanker and container traffic has stalled in the Strait of Hormuz, leading to rising prices of oil and gas and surge in energy insecurity across the world — around 20-25 per cent of the world’s seaborne oil and gas passes through the waterway.

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Sharma said that India’s supplies are secured and the situation should further improve soon as two cargoes of LNG are shortly arriving in the country.

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As for non-domestic requirements, Sharma said that priority is being given to essential establishments like hospitals and educational institutions.

Sharma further said the government has set up a three-member committee to look into the situation of gas availability with non-essential sectors — comprising executive directors of from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).

70% of Indian oil imports unaffected by Strait of Hormuz’ closure, says Centre

Sharma said that the government has lately diversified India’s crude oil imports.

As a result, 70 per cent of Indian oil imports are now routed outside of the Strait of Hormuz, which was previously 55 per cent, said Sharma.

Oil prices have skyrocketed by 65 per cent as Iranian strikes have forced production cuts and the closure of the Strait of Hormuz choked global supplies. From the pre-war price $72.48 a barrel, Brent crude futures hit a high of $119.50 on Monday —
the first time it crossed the $100-mark since 2022.

Sharma said, “India’s crude supply remains secure. Our daily consumption is about 55 lakh barrels. Through diversified procurement, the volumes we have secured today exceed what would normally have arrived through the Strait of Hormuz during this period.”