Govt asks PSU fuel retailers to build 30-day LPG buffer stock amid supply concerns

New Delhi: The Indian government has asked public sector oil marketing companies (OMCs) to build up liquefied petroleum gas (LPG) reserves sufficient to cover a minimum of 30 days of demand, a senior Ministry of Petroleum and Natural Gas official said at an inter-ministerial press briefing on Friday. The directive comes amid heightened vigilance over fuel availability following disruptions linked to the West Asia conflict.

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No LPG stockouts, but petrol and diesel sales spike

The Joint Secretary, Ministry of Petroleum and Natural Gas, Sujata Sharma, said no dryouts had been reported at LPG distributorships. However, she flagged an unusual surge in petrol and diesel sales at retail outlets across several districts, attributing it to a combination of agricultural demand, a migration of bulk purchases to the retail sector, and a shift in customers from private OMCs to public sector outlets.

"There are approximately 150 districts where petrol sales are witnessing a growth of over 30 percent, and about 14 districts where petrol sales have grown by more than 100 percent," Sharma said. On diesel, she added that 156 districts were recording growth of over 30 percent, with six districts seeing growth in excess of 100 percent.

She noted that private OMC diesel sales had declined by around 38 percent, while bulk diesel sales of public sector OMCs had also dropped by about 29 percent.

Hoarding & black marketing in the crosshairs

The government has convened a high-level meeting between the Petroleum Secretary and chief secretaries of states and union territories, as well as representatives from industry associations. States have been asked to form special squads to check hoarding and black marketing.

"Through industrial associations, an appeal is being made to all industrial and bulk consumers to refrain from panic buying and unnecessary stocking, and to procure supplies exclusively through their authorised procurement channels," Sharma said.

She also sought to reassure the public, saying the government was making "every possible effort" to ensure LPG cylinders reached every household and that petrol and diesel remained available at all fuel stations. LPG production currently stands at 52 thousand metric tonnes (TMT) per day.

Gas supply largely restored; crude shipments tracked closely

Natural gas supply to urea plants has been restored to 99 percent of capacity, while supply to industrial and commercial consumers, including city gas distribution (CGD) entities, has been restored to 80 percent.

On the shipping front, Opesh Kumar Sharma, Director, Ministry of Ports, Shipping and Waterways, said a Marshall Islands-flagged crude oil tanker carrying approximately 270,000 metric tonnes of crude had safely transited the Strait of Hormuz on the night of May 25-26 and is expected to arrive at Visakhapatnam on June 3.

13 Indian vessels in the region

With around 13 Indian-flagged vessels currently present in the Strait of Hormuz region — including one LPG tanker, five crude oil tankers, one chemical or product tanker, three container ships, two bulk carriers and one dredger — the ministry said coordination was underway with the Ministry of External Affairs to facilitate their safe departure.

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"The first priority is to get our ships — which are currently inside — out," Sharma said, adding that Indian seafarers aboard Marshall Islands-flagged vessels in the region were safe. He added that a plan to resume inbound Indian vessel movements was in place for when conditions in the strait normalise.

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