Govt Directs Refiners To Maximise LPG Production; Supply Only To IOC, HPCL And BPCL
· Free Press Journal
The government has directed all refineries to maximise production of liquefied petroleum gas (LPG) and make the fuel available only to three state-run companies — Indian Oil, HPCL and BPCL, according to a report by Reuters.
The direction has come amid the energy crisis due to the United States-Israel-Iran war in West Asia.
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The government has also asked refiners not to use propane and butane for petrochemical production and ordered public sector companies to sell LPG to domestic customers only, according to the report.
US-Iran-Israel War LIVE Updates: IRIS Dena Was 'Unloaded & Unarmed' When Sunk By US Sub, Says Iran's Deputy Minister Of Foreign Affairs In New DelhiLiquefied petroleum gas is a combination of propane and butane.
With this, the government aims to prioritise the availability of LPG for domestic usage. Natural gas is also used for industrial purposes.
The direction has come even as many natural gas companies have limited supply to industries.
It was reported on Thursday that Adani Total Gas has almost trebled its prices for supplies to industrial clients after a certain daily consumption limit.
The company cited the lower availability of gas amid the conflict in the Middle East. Gujarat Gas announced on Wednesday that it will be limiting the supply of natural gas to industrial users effective Friday.
Oil Prices Drop As US Grants 30-Day Waiver For Indian Refiners To Buy Stranded Russian CrudeCompanies like GAIL and Indian Oil Corporation have already reduced gas supplies to industries, according to some reports.
Earlier on Thursday, it was reported that Mangalore Refinery and Petrochemicals has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage. One of its hydrocrackers has also been shut down since Wednesday evening.
India is the top LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.
Asia is largely dependent on imports to meet its energy needs and a significant amount of it comes from the Middle East.
However, amid concerns of an energy crisis due to the war, the US has given a 30-day moratorium to India to buy Russian oil as supplies from the Middle East have stalled.