Prime Minister Narendra Modi on Tuesday held a meeting with Petroleum Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar to review LPG supplies and assess potential disruptions arising
from the ongoing Iran war.
Amid mounting strain on global energy supplies due to the ongoing West Asia conflict, the union government on Tuesday invoked the Essential Commodities Act (EC Act) to protect the domestic fuel market from potential disruptions.
The Petroleum Ministry said a control order has been issued directing refineries and petrochemical units to ramp up liquefied petroleum gas (LPG) production and channel key hydrocarbon streams into the LPG pool to ensure uninterrupted availability of cooking gas nationwide.
The ministry added that invoking the Act has formalised a priority framework for natural gas allocation to address prevailing supply constraints. Under the revised guidelines, domestic piped natural gas (PNG) and compressed natural gas (CNG) for transport will receive 100% assured supply, while other sectors will be subject to calibrated caps based on their average consumption over the past six months.
Oil marketing companies (OMCs) have stepped up measures to boost Liquefied Petroleum Gas (LPG) production and ensure priority supply to domestic consumers amid geopolitical disruptions affecting global fuel markets.
In a joint statement on Tuesday, Indian Oil Corporation Limited, Bharat Petroleum Corporation and Hindustan Petroleum Corporation said the Ministry has initiated steps to increase LPG output and secure adequate stocks for household consumers as well as essential non-domestic sectors.
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has taken the step for higher LPG production and securing it for supplying to domestic customers. Along with ensuring supplies to all domestic customers, it has been decided to make supplies as per requirement to the essential non domestic sectors such as hospitals, educational institutions, etc. For LPG supply to other non-domestic sectors, a committee of three Executive Directors of Oil Marketing Companies have been constituted to review the representations and prioritise the LPG supply,” the joint statement said.
