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LPG Shortage: OMCs Say Non-Essential Supply To Be Reviewed Based On Merit, Necessity

Requests will be considered based on their merits and product availability, a joint statement from IOCL, BPCL and HPCL said.

LPG Shortage: OMCs Say Non-Essential Supply To Be Reviewed Based On Merit, Necessity

Indian government-owned oil marketing companies on Tuesday said they will review requests from commercial establishments for supply of liquefied petroleum gas based on "merit, necessity, and product availability" amid severe shortage due to the Middle East conflict.

"In light of current geopolitical disruptions affecting global fuel supply, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions. Requests from other non-domestic sectors will be reviewed by a committee of Executive Directors from Oil Marketing Companies and prioritised based on merit, necessity, and product availability," a joint statement from Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. said.

For essential requirements from other sectors, submissions can be made to the committee by emailing at:

  • indanecareho@indianoil.in
  • edlpg@bharatpetroleum.in
  • lpg.sbu.head@hpcl.in

"Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance. Requests will be considered based on their merits, product availability and appropriate decisions will be made accordingly," the statement added.

ALSO READ: Commercial LPG Shortage: Government Forms Panel To Address Supply Crunch

The rationing in supply of LPG comes amid 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.

An oil ministry notification on Tuesday barred refiners — including Reliance Industries Ltd.'s export-oriented unit — and petrochemical plants from using the fuel as a feedstock, while also ordering them to maximise LPG output. That was an expansion of a previous measure targeting other processors.

ALSO READ: LPG Booking Period Increased From 21 To 25 days Amid Middle East Conflict: Govt Sources

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