Centre asks fuel retailers to maintain 30-day LPG reserves

The Centre has directed state-run fuel retailers to significantly enhance liquefied petroleum gas (LPG) storage infrastructure and maintain reserves sufficient to meet at least 30 days of demand, amid concerns over supply disruptions caused by the recent conflict in West Asia.

“We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it,” Sujata Sharma, joint secretary in the petroleum ministry, said on Friday, according to news agency PTI.

The government has asked state-owned oil marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -to prepare plans for creating additional LPG storage capacity over and above their regular commercial inventories.

The move comes after the three-month-long conflict in West Asia disrupted global energy supply chains, affecting India’s energy imports from the Gulf region.

Around 40 per cent of India’s crude oil imports, 65 per cent of its natural gas supplies and 90 per cent of its LPG imports originate from Gulf countries.

While India has managed to secure alternative supplies of crude oil and natural gas, disruptions in LPG imports have forced authorities to regulate supplies to commercial consumers.

Sharma also said that the government is working to expand the country’s crude oil storage capacity, although she did not share further details.

The government maintained that India currently has adequate stocks of petrol, diesel, LPG, crude oil and natural gas. It added that domestic refineries are operating at optimum levels and LPG production has reached an all-time high of around 52,000 tonnes per day.