Petroleum Minister’s Swipe At Private Players Over India’s LPG Crisis

At the CII Annual Business Summit in New Delhi, the Union Minister for Petroleum and Natural Gas Hardeep Singh Puri took a swipe at certain private sector energy players for having done far less than expected during the initial phase of the energy crisis triggered by the Strait of Hormuz disruption that severely distorted crude oil and LPG supply chains into India. While some domestic players failed to ramp up LPG production despite emerging shortages, others allegedly continued exports from India turning a Nelson’s eye to the country’s mounting energy predicament. Puri noted that Indian PSUs were “taking the loss” adding, “I wish I could say this for everyone in the game. I cannot.” An industry source disclosed that India’s normal daily LPG requirement of nearly 50 lakh cylinders suddenly surged to almost 75 lakh amid panic buying and hoarding after the Hormuz closure triggered market anxiety. “Managing this crisis despite a continuing 40% supply deficit was no mean feat either,” the source added. The escalating geopolitical turbulence across West Asia has now pushed the Modi government into a calibrated LPG crisis management mode as delayed cargo movements, tightening inventories and fears of black-marketing impact multiple states. India, the world’s third-largest LPG consumer with over 33 crore active connections, imports nearly 62% of its LPG requirement with almost 90% sourced from West Asia. The present disruption has exposed India’s strategic vulnerability with storage reserves of barely 14.2 lakh MT translating into roughly 17 days of consumption cover. The Centre has directed PSU and private refineries to maximize LPG production while nudging Reliance Industries to enhance domestic output. Fast-tracked spot cargo procurements, utilization of coastal import infrastructure including Petronet LNG facilities and possible Government-to-Government energy arrangements with Nigeria and Malaysia are simultaneously under evaluation even as anti-hoarding enforcement intensifies nationwide.