Amid an LPG shortage triggered by the Middle East conflict, the government has diversified its crude oil portfolio and is buying oil from 40 countries, NDTV cited government sources as saying on Tuesday.
The sources added that in a situation where there is a choice between commercial and domestic consumers, preference will be given to domestic consumers.
"Interest of domestic consumers is paramount. If there is a choice between commercial and domestic consumers, preference will be given to domestic consumers," the sources told NDTV.
Further, the report highlighted that crude oil supply from non-hormuz sources has steadily grew. Currently it stands at 70%, it was 60% two days ago, and 50% 10 days ago.
Additionally, the sources said that domestic production of LPG has increased by 10% in the last two days and that the Rs 60 hike in LPG cylinders was pre-decided and has nothing to do with the current crisis.
"As before, there is still a gap of 2.5 days between booking and delivery of LPG, but new bookings will be made after 25 days. Before this crisis, 60 lakh LPG cylinders were distributed daily, still the same is happening," the sources stated.
According to the sources, the problem and long queues at some places for LPG are because people are panic buying LPG cylinders.
"We were in trouble before, now we are not. We are looking at the next few days, if today's situation persists, we will be in a comfortable position," the sources remarked.
The sources also addressed issues related to commercial cylinders and said that they will see to any problem that arises but assured that there are no attempts to hoard the cylinders.
LPG Crisis
The 11-day-old Iran war that has disrupted the suppy of oil and gas from the Gulf to India. Fuel shipments through the Strait of Hormuz, a key chokepoint, are all but halted.
India consumes some 31.3 million tonnes of LPG annually. As much as 87% of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants. Of this total requirement, as much as 62% is met through imports.
The government has invoked emergency powers to redirect supplies of LPG away from industrial users to households, as it seeks to shield ordinary people from the impact of the Iran war.
To follow all the live updates of the crisis, click here
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