Government asks state-run fuel retailers to build LPG reserves for 30 days amid supply concerns

The Centre has directed staterun oil marketing companies OMCs to prepare plans for expanding liquefied petroleum gas LPG storage capacity to cover at least 30 days of demand amid concerns over supply disruptions caused by the ongoing conflict in West AsiaThe move comes as India seeks to strengthen its energy security and reduce vulnerabilities arising from geopolitical tensions in a region that remains a key source of the countrys energy importsOil ministry directs OMCs to enhance LPG storageSpeaking to reporters on Friday Petroleum Ministry Joint Secretary Sujata Sharma said the government has asked public sector fuel retailers to work on creating larger LPG reservesWe are working on strategic reserves Oil marketing companies have been asked to formulate plans to maintain LPG reserves for a minimum of 30 days and they are currently working on it Sharma saidThe directive has been issued to major stateowned fuel retailers mdash Indian Oil Corporation IOC Bharat Petroleum Corporation Limited BPCL and Hindustan Petroleum Corporation Limited HPCL mdash which dominate Indias fuel distribution networkAccording to officials the proposed reserves would be in addition to the regular commercial inventories maintained by these companiesWest Asia conflict exposes supply vulnerabilitiesThe governments decision follows disruptions in energy supplies linked to the recent conflict in West Asia a region that accounts for a significant share of Indias energy importsOfficials said nearly 40 per cent of Indias crude oil imports 65 per cent of natural gas imports and about 90 per cent of LPG supplies originate from Gulf countries The threemonth conflict affected supply chains and highlighted the need for stronger emergency reservesWhile India has largely managed to secure alternative supplies of crude oil and natural gas LPG availability has faced greater pressure prompting authorities to take precautionary measuresNatural gas plays a critical role in electricity generation fertiliser production compressed natural gas CNG distribution and piped cooking gas supplies to householdsPlans also underway to expand crude oil storageApart from LPG reserves the government is also examining options to increase the countrys crude oil storage capacityAlthough Sharma did not provide specific details about the proposed expansion the move is part of a broader strategy to strengthen Indias energy preparedness against future supply disruptionsGovernment officials maintained that current fuel availability remains adequate across the countryGovernment says fuel stocks remain sufficientThe petroleum ministry stated that India has sufficient stocks of petrol diesel LPG crude oil and natural gas Refineries are operating at optimal levels while domestic LPG production has reached an alltime high of around 52000 tonnes per daySharma said no LPG distributorships have reported stock shortages so far However authorities have observed unusually high fuel sales at several petrol pumpsAccording to the ministry the increase in retail fuel demand has been driven partly by agricultural activities and a shift in purchases from private retailers and bulk suppliers to staterun outlets because of pricing differencesMore than 150 districts have recorded petrol sales growth of over 30 per cent while 14 districts reported sales increases exceeding 100 per cent Diesel sales rose by more than 30 per cent in 156 districts with six districts witnessing growth of over 100 per centStates asked to curb hoarding and black marketingOfficials noted that sales at private fuel retail outlets have declined sharply while stateowned retailers have witnessed increased demand Since midMay IOC BPCL and HPCL have raised petrol and diesel prices by around Rs 750 per litre although private retailers have implemented steeper increases in some marketsThe government said it is closely monitoring the situation and has advised states and Union Territories to form special enforcement teams to prevent hoarding and black marketing of fuelConsumers have also been urged to avoid panic buying and purchase fuel only through authorised distribution channels with authorities reiterating that adequate supplies are available across the countryWith inputs from PTI