The government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 to 25 days to prevent hoarding, as panic buying triggered a 15-20 per cent surge in demand amid fears of supply disruption due to the Iran war
Prices of domestic LPG and commercial cylinders were hiked by Rs 60 and Rs 114.5, respectively. Pic/PTI
The government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 days to 25 days to prevent hoarding, as there were signs of panic buying taking place in the market amid the uncertainties due to the Iran war.
Officials said that there is a sufficient supply of LPG available in the country, and the booking time for LPG cylinders has been increased as a measure to manage inventory effectively.
The step has been taken as there was a surge in demand of 15 to 20 per cent due to panic booking, due to fears that supply would be disrupted because of the escalating war in the Middle East.
Average households consume 7-8 LPG cylinders of 14.2 kg in a year and should normally not need a refill in less than 6 weeks, an official pointed out.
A senior official said that petrol and diesel prices will not be increased for now despite international crude oil rates crossing USD 100 per barrel. Oil marketing companies-- Indian Oil, Bharat Petroleum and Hindustan Petroleum-- are expected to absorb the current cost pressure for the time being.
He said the government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices.
Meanwhile, the Parliament was informed on Monday that India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts.
"The government has established Strategic Petroleum Reserves facilities with a total capacity of 5.33 million metric tonnes (MMT), which can act as a buffer for short-term supply shocks such as geopolitical conflicts. This is meant to provide for about 9.5 days of crude oil requirement. In addition, Oil Marketing Companies in the country have storage facilities for crude oil and petroleum products for 64.5 days. Hence, the current total national capacity for storage of crude oil and petroleum products is 74 days," Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha in a written reply.
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