Global Tensions hit LPG Logistics, but OMCs Push to Maintain Supply in India
·4 months ago·2 min read
Key Points
Oil marketing companies are working to maintain LPG supply across India despite global disruptions linked to the Iran conflict, with industry officials monitoring the situation daily to ensure availability for dealers and consumers.
New Delhi, Mar 13: Oil marketing companies (OMCs) in India are making sustained efforts to maintain a stable supply of liquefied petroleum gas (LPG) despite disruptions in global energy logistics caused by escalating tensions in West Asia, according to Nitin Khara, Chairman and Managing Director of Confidence Petroleum India Limited. He said, the company is closely monitoring the LPG supply situation on a daily basis to ensure that dealers and consumers across the country continue to receive fuel without major interruptions.
“Every morning we assess how to ensure gas supply for the day. Dealers from different parts of the country keep calling, and we try our best to ensure timely deliveries,” Khara said. However, he acknowledged that the ongoing global developments have created logistical challenges.
According to Khara, LPG importers are currently facing a major issue as two vessels carrying LPG remain stranded near sea ports and are unable to either enter or leave, disrupting the normal supply chain. Typically, the company imports around 40,000 metric tonnes of LPG every month, but the current situation has affected the usual supply cycle.
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Khara said the initial plan was to unload approximately 850 metric tonnes from a shipment, while the remaining quantity was to be supplied to the Malaysian operations of Norway-based energy company Equinor under a prior commitment.
However, several LPG dealers across India have urged the company to retain the gas for domestic distribution due to concerns about potential shortages.“Considering these requests, we are evaluating the possibility of using the available LPG within the country to provide relief to domestic consumers,” Khara said. State governments have also suggested unloading the shipment locally to strengthen the domestic supply.
If the LPG is retained within India, it could provide additional supply for about 12 to 13 days, offering temporary relief to the market. Khara added that even if the global situation stabilises quickly, it may take nearly four months for the entire LPG supply chain to return to normal due to refinery disruptions, reduced production and a shortage of LPG vessels. (IANS)
“Every morning we assess how to ensure gas supply for the day. Dealers from different parts of the country keep calling, and we try our best to ensure timely deliveries,” Khara said. However, he acknowledged that the ongoing global developments have created logistical challenges.
According to Khara, LPG importers are currently facing a major issue as two vessels carrying LPG remain stranded near sea ports and are unable to either enter or leave, disrupting the normal supply chain. Typically, the company imports around 40,000 metric tonnes of LPG every month, but the current situation has affected the usual supply cycle.
Read More: From Internet to Village Desk:MP's Umri to pilot India's 'Phygital' Service Model
Khara said the initial plan was to unload approximately 850 metric tonnes from a shipment, while the remaining quantity was to be supplied to the Malaysian operations of Norway-based energy company Equinor under a prior commitment.
However, several LPG dealers across India have urged the company to retain the gas for domestic distribution due to concerns about potential shortages.“Considering these requests, we are evaluating the possibility of using the available LPG within the country to provide relief to domestic consumers,” Khara said. State governments have also suggested unloading the shipment locally to strengthen the domestic supply.
If the LPG is retained within India, it could provide additional supply for about 12 to 13 days, offering temporary relief to the market. Khara added that even if the global situation stabilises quickly, it may take nearly four months for the entire LPG supply chain to return to normal due to refinery disruptions, reduced production and a shortage of LPG vessels. (IANS)
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