Middle East Crisis: Uninterrupted domestic LPG cylinder deliveries continue, panic-booking reduced, says Indian govt

The central government reiterated on Monday that there is no energy supply crisis in the country, with adequate stockpiles and no shortages. In an inter-ministerial briefing in the national capital, official spokespersons said that uninterrupted LPG supplies to households are being maintained with refineries continuing to operate at full capacity and retail outlets observing normal operations. The officials also dismissed rumours about under-filled cylinder claims, stating that such reports are false and fabricated. They also said that authorities are taking strict action against black-marketing, with 37,000 raids, 500 FIRs and 500 detentions already carried out.

Authorities are continuing to prioritise uninterrupted LPG supplies and PNG expansion, particularly for households and priority sectors such as hospitals and educational institutions, with enhanced refinery output and revised booking intervals from 21 to 25 days in urban areas and up to 45 days in rural areas and prioritised allocation, they said.

Officials also said that states have been urged advised to facilitate PNG connections for both domestic and commercial consumers. Advising citizens to only rely on official sources of information, officials reiterated that citizens should avoid booking refills in panic. They also encouraged citizens to use alternate fuels such as PNG and electric or induction cooktops and to conserve energy.

Add Zee Business as a Preferred Source

The development comes at a time when crude oil benchmarks plunged sharply after a social media post by US President Donald Trump drove hopes of a breakthrough in the Middle East conflict. The POTUS wrote that the US has had "very good and productive conversations" with Iran regarding "a complete and total resolution" of hostilities in the Middle East.

Brent futures fell as much as 13.6 per cent to $91.8 a barrel after the news. Read more on crude oil

Here are key takeaways from the March 23 briefing:

• The country has adequate crude stocks
• Authorities are closely monitoring global developments
• All refineries are operating at full capacity with adequate crude inventories
• Sufficient stocks of petrol and diesel are being maintained
• No dry-out situation anywhere
• The situation at retail outlets is normal

LPG supply

• LPG supply to domestic consumers is smooth and uninterrupted

• Domestic LPG production from refineries has increased from pre-crisis levels

• No dry-outs have been reported at distributorships

• Panic-bookings have reduced significantly

• Domestic LPG cylinder deliveries continue as normal

• Centre has already restored partial commercial LPG supply to consumers (20 per cent), an additional 10 per cent based on ease of doing business reforms for PNG expansion, and then another 20 per cent, taking the overall allocation to 50 per cent

PNG supply

• Priority sectors continue to receive protected supplies of Natural Gas
• Domestic PNG and CNG transport supplies at 100 per cent
• Industrial and commercial consumer supplies regulated at around 80 per cent
• City gas distributors directed to accelerate PNG connections; IGL, MGL, GAIL Gas and BPCL are offering incentives
• More than 3.5 lakh domestic and commercial PNG connections issued in March so far

• District collectors and Food and Civil Supplies officials requested to conduct regular enforcement actions

• Commercial LPG consumers in the major cities and urban areas are requested to switch to PNG

States' role

• Ongoing discussions to ensure safe transit of Indian citizens and vessels
• No such reports from states either
• Adequate fuel available at all petrol pumps
• States being supplied 20+10+20, i.e. 50 per cent commercial LPG
• Priority supply ensured for hospitals, schools, hotels, restaurants and state-run kitchens

• States and UTs are responsible for monitoring supplies under the Essential Commodities Act and its LPG control order; they have been advised to maintain vigilance against hoarding and black-marketing

· 32 States/UTs have setup control rooms. Many of the States/UTs are doing daily press briefs also.

Action against hoarding and black-marketing

• Strict action continues against hoarding black-marketing
• 37,000 raids, 500 FIRs and 500 people detained so far
• In 24 hours alone, 2,400 raids have been conducted and more than 800 cylinders seized
• Last weekend, OMCs conducted over 2,600 surprise inspections at retail outlets and LPG distributorships across the country
• 234 dealers issued notices after surprise inspections by oil marketing companies (OMCs)
• Major actions are reported in Andhra Pradesh, Uttar Pradesh and Delhi

Shipping

• Discussions are on to ensure safe transit of Indian citizens and vessels
• All 22 ships and 600 seafarers are safe
• The safe repatriation of more than 547 Indian seafarers has been facilitated
• DG Shipping is in continuous talks with all stakeholders and missions
• 13 citizens brought back in the last 48 hours
• No reports of congestion in cargo movement
• Additional space arranged for containers at ports
• Two ships carrying 92 LMT LPG are en route to India; real-time status to be updated soon
• Incoming shipments include the following:
  • 1 LNG cargo
  • 4 LPG cargoes
  • Crude shipments for IOCL, Reliance and DGN International

Since March 11, the government has been sharing regular updates on the potential impact of the crisis on the Indian economy, especially with respect to disruptions in the Strait of Hormuz -- a crucial maritime region that normally enables the supplies of one-fifth of the world's oil and gas.