Amid Middle East crisis, oil companies raise domestic LPG refill waiting period from 21 to 25 days

NEW DELHI: Oil marketing companies have increased the minimum waiting period for booking a domestic LPG refill from 21 days to 25 days to prevent hoarding and artificial scarcity of cylinders.

Just last week, oil companies had increased the minimum booking period to 21 days from the earlier 15 days.




The move comes in the wake of disruptions in import of LPG from conflict-hit West Asia which passes through the Strait of Hormuz. While tapping the US, Algeria, Norway, and Canada for LPG supplies, govt on Monday issued fresh orders, asking oil refiners to ramp up production of cooking gas for domestic consumers. There are over 33.1 crore LPG consumers in country.

Officials said an average household uses six-seven domestic cooking gas cylinders of 14.2kg in a year and typically does not require a refill for nearly 50-55 days. While maintaining that oil companies have adequate stocks, officials said the move is aimed at discouraging panic booking of cylinders by consumers.

The military conflict in West Asia has impacted energy supplies. India imports nearly 90% of its crude oil, while more than 60% of LPG and over 50% of LNG requirements are met through imports, most of which come from the Gulf region.

In an order on Monday, govt asked oil refiners, including petrochemical complexes, to maximise production of C3 and C4 streams such as propane, butane, propylene and butenes being produced, recovered, fractionated or otherwise available with them, and utilise them for the LPG pool to be supplied to state-run Indian Oil, Hindustan Petroleum and Bharat Petroleum. This LPG will be marketed solely to domestic consumers.

Officials said India has tied up with certain countries for LPG imports, but the transit time is long due to the distance to be covered as well as disruption in shipping routes. Deliveries are in process and are expected to improve availability for consumers in the coming days. They added that govt is closely monitoring the evolving global energy situation and making all possible efforts to ensure supply chains remain stable.

Meanwhile, in a letter to petroleum minister Hardeep Singh Puri, National Restaurant Association of India said it had received indications from gas agencies that supply of commercial LPG cylinders to restaurants may be stopped.