India Extends LPG Refill Waiting Period to 25 Days Amid West Asia Conflict
In a significant move to curb hoarding and artificial scarcity, oil marketing companies in India have increased the minimum waiting period for booking a domestic LPG refill from 21 days to 25 days. This decision comes as the nation grapples with disruptions in liquefied petroleum gas (LPG) imports from conflict-affected West Asia, particularly through the critical Strait of Hormuz.
Government Directs Refiners to Ramp Up Production
The government has issued fresh orders, instructing oil refiners, including petrochemical complexes, to maximize production of C3 and C4 streams such as propane, butane, propylene, and butenes. These components are to be utilized for the LPG pool supplied exclusively to state-run companies: Indian Oil, Hindustan Petroleum, and Bharat Petroleum. This LPG will be marketed solely to domestic consumers, ensuring priority for household needs.
Officials emphasized that while oil companies maintain adequate stocks, the extension of the waiting period aims to discourage panic booking by consumers. An average household typically uses six to seven 14.2kg cylinders annually, requiring a refill only every 50-55 days. With over 33.1 crore LPG consumers nationwide, this measure is designed to stabilize supply chains and prevent unnecessary shortages.
Impact of West Asia Conflict on Energy Supplies
The military conflict in West Asia has severely impacted global energy supplies, with India being particularly vulnerable due to its heavy reliance on imports. The country imports nearly 90% of its crude oil, while more than 60% of LPG and over 50% of LNG requirements are met through imports, predominantly from the Gulf region. The disruption in shipping routes through the Strait of Hormuz has exacerbated supply challenges, prompting India to seek alternative sources from the US, Algeria, Norway, and Canada.
However, officials noted that deliveries from these new suppliers are in process but face longer transit times due to the distances involved. They assured that availability is expected to improve in the coming days, with the government closely monitoring the evolving global energy situation and making all possible efforts to ensure stable supply chains.
Concerns from the Restaurant Industry
Amid these developments, the National Restaurant Association of India has raised concerns in a letter to Petroleum Minister Hardeep Singh Puri. The association reported receiving indications from gas agencies that supply of commercial LPG cylinders to restaurants may be halted, potentially affecting the food service sector. This highlights the broader economic implications of the energy supply disruptions.
This policy adjustment follows a recent increase in the minimum booking period from 15 to 21 days just last week, underscoring the rapid response to ongoing geopolitical tensions. As India navigates these challenges, the focus remains on securing energy resources for its vast consumer base while mitigating the risks of hoarding and market instability.
