Amid a halt in traffic through the Strait of Hormuz, the government during a briefing on Tuesday has said that roughly 3 lakh metric tonnes of liquified petroleum gas is stranded.
Speaking on the volume of shipments, Rajesh Kumar Sinha, Special Secy, Ministry of Shipping said that while exact data would be confirmed, a rough estimate suggests that each LPG carrier transports around 45,000 metric tonnes of liquefied petroleum gas. Based on current movement, the total volume is estimated to be close to 300,000 metric tonnes. However, figures related to LNG and crude shipments were not immediately available and are expected to be clarified subsequently.
During the press briefing he said that all 22 ships and seafarers around Gulf are safe. He also added that 161 Indian citizens have been repatriated in the last 24 hours.
On the issue of freight insurance, particularly in the context of rising geopolitical tensions, Sinha said details of any scheme under the Commerce Ministry are not yet available. “I will not be able to comment on that at this stage,” he said adding that discussions are ongoing at various levels.
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The primary concern flagged by shipping companies relates to the additional war risk premium being charged on freight. This has emerged as a key issue for several shipping lines operating in sensitive routes. The official noted that the matter has been taken up, and stakeholders have been asked to provide specific details so that it can be addressed more effectively.
Interestingly, the issue was not raised earlier by the Shipping Corporation of India during the transit of two vessels handled previously. However, it appears that some shipping lines have started facing challenges more recently, likely due to evolving risk perceptions.
Giving an update on black market LPG. Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum and Natural Gas said that till now the government has conducted 12,000 raids and seized over 15,000 LPGs.
She also pointed that on Monday there were 70,000 panic bookings for LPG cylinders. She repeated her request for users to not panic and if possible to look for alternatives.
Sharma on Tuesday said 94% booking of domestic LPG is being places online. She also asked users to continue to make online booking and not panic. She also noted that Delivery Authenticity Code (DAC) has increased to 76%.
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