LPG supply situation in India comfortable, say OMCs

New Delhi: Oil Marketing Companies (OMCs) dismissed reports that appeared in certain sections of the media, claiming that they were planning on rationing LPG cylinders in the wake of a scarcity in LPG supply. "There are media reports of a possible LPG cooking gas crunch in the country in the festive season ahead. The OMCs would like to clarify that, contrary to such reports, they are fully equipped to meet the enhanced LPG demand through both indigenous sources as well as imports," a joint statement released by Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) said on Friday.

'LPG supply in place'

While all LPG suppliers, including Saudi Aramco, are standing by their commitment to dispatch agreed quantities, indigenous supplies have also been stepped up and additional cargoes are being arranged to meet the enhanced demand in the festive period, the statement said. "The OMCs stand by their commitment of providing an uninterrupted supply of LPG cooking gas to their valued customers," the press release said.

What did the reports claim?

Reports had claimed that users holding only one LPG cylinder will be given preference over those holding two cylinders. Quoting sources within OMCs, certain sections of media had said that even though IOC, BPCL and HPCL had ample LPG supply as of now, there was some disruption because of the attack on Saudi Aramco's oil facilities and the fire at ONGC's Uran plant. However, they also quoted oil ministry officials as saying that there would be no shortage of LPG during the upcoming festive season as a fresh cargo from Abu Dhabi National Oil Company (ADNOC) would reach the Indian shores soon.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)