LPG Production Up 25%, Government Says Amid Shortage Reports

There has been a 25 per cent increase in the production of cooking gas and there is no need for panic buying, the government said today amid reports of hotels and restaurants shutting down across the country due to the shortage of commercial LPG. The government has prioritised LPG for domestic use.

Sujata Sharma, the Joint Secretary (Marketing & Oil Refinery), of Petroleum ministry said today the country used to get 60 per cent of its LPG requirement from abroad, of which 90 per cent used to come through the Strait of Hormuz, which has been shut by Iran amid the war with the US and Israel. 

The government had since directed an increase in domestic production. Sharma said refineries have now increased production by 25 per cent. 

Read: Mumbai's Iconic Hotels Forced to Dim Their Lights As LPG Dry Spell Continues

It is panic booking that is making the crisis appear serious, Sharma said, advising against "rush booking". 

"To prevent arbitrary diversions at the distribution level, we are ensuring delivery through a One Time Delivery Code. The LPG cylinder rebooking has been extended from 21 to 25 days," she added. 

A committee has been named to handle the LPG situation and develop a diversion plan accordingly.

Read: No Biryani, Shahi Paneer For Lawyers As LPG Shortage Hits Delhi High Court Canteen

Sharma said there is no need to worry about crude oil either. The oil inflows are exceeding the daily requirement of 5.5 million barrels. Hormuz shut, crude oil is coming in from 40 nations and refineries are operating at full capacity.  

Regarding the fuel pricing, Sharma said Saudi benchmark for LPG prices has increased by 33 per cent. "This is a global challenge, hence priority is given to essential sectors," she added.