"Domestic Production Up 30%": Centre Says No Need For LPG Panic Booking

The demand pattern for cooking gas in the country has changed, showing massive panic buying in view of the ongoing US-Israel war against Iran, the government has said, underscoring that domestic production of LPG has gone up by 30 per cent. All 100 per cent of the supply is going to domestic consumers.

Even so, LPG bookings have surged to 75.7 lakh a day against an average of 55.7 lakh in the pre-war period, showing panic booking, said Sujata Sharma, Joint Secretary in petroleum ministry.

"I want to appeal to the people that there be no rumour mongering and there is absolutely no need to panic," she said. 

Read: LPG Production Up 25%, Government Says Amid Shortage Reports

The country used to get 60 per cent of its LPG requirement from abroad, of which 90 per cent came through the Strait of Hormuz, which has currently been shut down by Iran. Tankers passing through the Strait --- a narrow, 50-mile passage that connects the Gulf with the Arabian Sea and carries about a fifth of the world's oil and LPG -- are being targeted and around 10 have been blown up since the war started.

The Strait of Hormuz has practically been closed to ships: AFP

The government had since directed an increase in domestic production. A committee has also been named to handle the LPG situation and develop a diversion plan.

There is no need to worry about crude oil either, Sharma has said. He pointed out that with India now sourcing crude oil from 40 nations, the inflows are exceeding the daily requirement of 5.5 million barrels. 

Iran, meanwhile, has dismissed reports that claimed Tehran has allowed India-flagged tankers to pass through the Strait of Hormuz.