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FM claims steady LPG flow as oil ministry flags concern

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As the second Indian tanker Nanda Devi carrying 45,000 metric tonnes of LPG arrived in Gujarat in the wee hours of Tuesday, Finance Minister Nirmala Sitharaman allayed concerns around cooking gas shortage, saying “supplies were being maintained”. The Petroleum Ministry, however, described the LPG supply situation as a “matter of concern”.Speaking in the Rajya Sabha on the Appropriation Bill, Sitharaman said the government was ensuring steady flow of LPG despite global turbulence. She also said India had enough fertilisers for the kharif sowing season and would begin bidding globally for nutrients for the next rabi season.“India imports about 65 per cent of its LPG requirements, of which 90 per cent come through the Strait of Hormuz. As a result, there was speculation about whether we would get it or not. There are enough reports on how we are ensuring a steady flow during these turbulent times,” Sitharaman said.She pointed to ramped up domestic LPG production to add that this entire additional production was going to domestic consumers. “Domestic LPG production is up about 25 per cent since March 8 when the government asked oil refiners to maximise production,” the minister said.At a separate inter-ministerial briefing on the energy situation, Petroleum Ministry Joint Secretary Sujata Sharma, however, described the LPG supply situation as a “matter of concern”, urging citizens to use cooking gas “rationally” and switch to induction stoves and piped natural gas wherever possible.Officials said panic booking of LPG cylinders had begun to ease, with refill requests declining from a peak of nearly 89 lakh on March 13 to about 70 lakh, indicating a downward trend. However, the government maintained that the overall supply situation continued to require close monitoring.At a high-level inter-ministerial briefing on the West Asia crisis, the Petroleum Ministry said domestic LPG supply remained uninterrupted, with daily distribution still ranging between 50 lakh and over 62 lakh cylinders, as in the pre-war days. “There has been no decline in LPG supply to the households,” an official said, adding that commercial and bulk LPG supplies had been curtailed to prioritise domestic consumers.Providing a clearer picture of incoming supplies, officials indicated that a single LPG carrier typically carried around 45,000 metric tonnes of LPG. Based on preliminary estimates, the official said total LPG cargo linked to the currently tracked vessels was in the range of about 3 lakh metric tonnes, though precise figures were being compiled and would be shared later.The ministry said the reported 17 per cent drop in LPG consumption in March was a result of these curbs on commercial usage rather than any fall in household demand.Reiterating its appeal, the Centre urged commercial establishments to shift to PNG and advised households to adopt alternative cooking options such as induction and electric cooktops wherever feasible. States have also been asked to fast-track approvals for pipeline infrastructure and waive local levies to expand PNG networks.On the supply side, officials said domestic LPG production from refineries had been ramped up by about 38 per cent by diverting feedstock streams into the LPG pool, while imports were being diversified beyond the Gulf region, including recent procurement from the US.The Shipping Ministry said both LPG carriers–Shivalik and Nanda Devi–were currently discharging cargo at Kandla. In the case of Nanda Devi, ship-to-ship transfer operations are underway. Officials, however, declined to specify timelines for the next shipments, even as several Indian vessels remained stalled west of the Strait of Hormuz.

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