LPG Supply: Govt Sets New Production Rules After West Asia Crisis Disrupted Imports; What Changes

The
gove me t
has
put
i
place
a
ew
f amewo k
to
e su e
highe
domestic
availability
of
cooki g
gas
i
the
eve t
of
a
LPG
supply
dis uptio ,
assig i g
p oductio
ta gets
to
efi e ies
a d
upst eam
compa ies
ac oss
the
cou t y.

U de
a
o de
issued
by
the
Pet oleum
a d
Natu al
Gas
Mi ist y
o
August
13,
21
efi e ies
a d
upst eam
compa ies
have
bee
give
maximum
LPG
p oductio
levels.
The
combi ed
p oductio
pote tial
cove ed
by
the
schedule
is
63,810
to es
pe
day,
epo ted
PTI.

The
p esc ibed
limits
will
apply
whe
the
gove me t
dete mi es
that
the e
is
a
supply
co st ai t
a d
additio al
domestic
p oductio
is
equi ed.

Relia ce’s
Jam aga
Refi e y
Gets
18,000-To e
Ta get

Relia ce
I dust ies
has
eceived
the
la gest
i dividual
allocatio
u de
the
ew
f amewo k.
Its
33
millio
to es
pe
yea
domestic-ta iff
a ea
(DTA)
efi e y
at
Jam aga ,
Guja at,
has
bee
assig ed
a
LPG
p oductio
ta get
of
up
to
18,000
to es
pe
day.

The
compa y’s
35.2
millio
to es
pe
yea
efi e y
at
the
same
locatio ,
which
is
dedicated
to
expo ts,
has
ot
bee
assig ed
a
ta get
u de
the
schedule.

Public
secto
efi e ies
accou t
fo
a
combi ed
31,470
to es
pe
day
of
the
p esc ibed
output.
A
total
of
18
efi e ies
ow ed
a d
ope ated
by
public
secto
oil
compa ies
have
bee
i cluded
i
this
allocatio .

Naya a
E e gy’s
20
millio
to es
pe
yea
Vadi a
efi e y
has
bee
assig ed
a
ta get
of
4,480
to es
pe
day.
The
efi e y
is
backed
by
Russia’s
Ros eft.

Compa ies
i volved
i
upst eam
p oductio
a d
gas
p ocessi g,
i cludi g
ONGC
a d
GAIL,
have
bee
assig ed
a
combi ed
LPG
p oductio
ta get
of
6,460
to es
pe
day.

Also
Read
:

Sha e
Ma kets
Ope
The
Week
I
Red
Despite
Asia
Pee s’
Rally:
Se sex
About
300
Poi ts
Dow

Impo t
Depe de ce
Exposed
Du i g
West
Asia
C isis

The
gove me t’s
move
follows
the
dis uptio
to
LPG
supplies
du i g
the
West
Asia
co flict,
whe
I dia’s
elia ce
o
impo ts
c eated
p essu e
o
domestic
availability.

I dia
co sumed
33.2
millio
to es
of
LPG
i
2025-26,
wo ki g
out
to
a ou d
91,000
to es
pe
day.
Domestic
p oductio
du i g
the
yea
stood
at
13.1
millio
to es,
o
app oximately
35,900
to es
pe
day.
Impo ts
made
up
the
emai i g
21.3
millio
to es,
equivale t
to
about
58,400
to es
pe
day.

Impo ts
the efo e
accou ted
fo
mo e
tha
64
pe
ce t
of
total
LPG
co sumptio .

The
dis uptio
was
pa ticula ly
sig ifica t
because
the
St ait
of
Ho muz,
th ough
which
I dia
eceived
90
pe
ce t
of
its
impo ts
f om
cou t ies
such
as
Saudi
A abia,
was
effectively
shut
afte
the
I a
wa
bega .

The
gove me t
espo ded
i
Ma ch
with
eme ge cy
measu es
aimed
at
i c easi g
domestic
LPG
availability.
Refi e ies
we e
di ected
to
dive t
st eams
used
fo
pet ochemical
p oductio
towa ds
LPG,
while
supplies
to
i dust ial
a d
comme cial
co sume s
we e
i itially
stopped
a d
late
esto ed
g adually.

Fo
household
co sume s,
the
i te val
betwee
efill
booki gs
was
i c eased,
a d
co sume s
we e
e cou aged
to
move
towa ds
piped
atu al
gas.

Domestic
LPG
p oductio
eached
a ou d
55,000
to es
pe
day
at
the
peak
of
the
c isis.
The
eme ge cy
di ectio s
we e
g adually
withd aw
afte
supplies
imp oved
f om
mid-Ju e.

Compa ies
Must
St e gthe
Sto age
A d
T a spo t
Capacity

The
latest
o de
establishes
a
lo ge -te m
mecha ism
i stead
of
elyi g
o ly
o
eme ge cy
di ectio s
du i g
a
supply
dis uptio .

Refi e ies
a d
upst eam
oil
compa ies
have
bee
i st ucted
to
develop
a d
mai tai
sufficie t
i f ast uctu e
to
sto e,
evacuate
a d
t a spo t
LPG
co espo di g
to
the
qua tities
specified
i
the
p oductio
schedule.
This
ca
be
do e
eithe
di ectly
o
th ough
othe
e tities,
i cludi g
ailways
a d
oad
ta ke s.

The
mi ist y
has
also
di ected
compa ies
to
exami e
tech ically
a d
eco omically
feasible
ways
of
i c easi g
LPG
output
f om
existi g
facilities.

These
measu es
i clude
tech ologies
such
as
aphtha-to-LPG
co ve sio
a d
upg ades
i volvi g
fluid
catalytic
c acki g
u its.
Compa ies
have
bee
asked
to
impleme t
such
measu es
whe e
feasible
to
aise
p oductio
beyo d
the
mi imum
qua tities
specified
i
the
schedule.

A y
such
upg ades
a e
to
be
i timated
to
the
Ce t e
fo
High
Tech ology
o
a othe
autho ised
age cy.

Govt
Ca
O de
Additio al
P oductio
Du i g
Sho tages

The
f amewo k
also
gives
the
ce t al
gove me t
the
powe
to
i te ve e
whe
it
co side s
additio al
LPG
p oductio
ecessa y
i
the
public
i te est.

The
o de
allows
the
gove me t,
eithe
di ectly
o
th ough
the
Ce t e
fo
High
Tech ology
o
a othe
autho ised
age cy,
to
di ect
oil
efi i g
compa ies,
oil
ma keti g
compa ies
a d
upst eam
oil
compa ies
to
i c ease
LPG
p oductio
fo
specified
qua tities
a d
pe iods.

Such
di ectio s
may
also
i clude
est ictio s
o
alte ative
uses
of
i put
st eams
that
a e
equi ed
fo
LPG
p oductio .

O ce
a
o de
is
issued,
the
co ce ed
compa ies
will
have
to
aise
p oductio
withi
the
stipulated
timef ame.

Also
Read
:& bsp;Active
Vs
Passive
Fu ds:
7
Key
Diffe e ces
I vesto s
Should
K ow

P oductio
Schedule
To
Be
Updated
Twice
A
Yea

The
gove me t
will
evise
the
LPG
p oductio
schedule
eve y
six
mo ths,
with
updates
due
o
Ja ua y
1
a d
July
1
each
yea .

The
evisio s
will
accou t
fo
p oductio
f om
ew
efi e ies
a d
upst eam
compa ies
as
well
as
additio al
LPG
output
f om
existi g
facilities.
Cha ges
a isi g
f om
imp oveme ts
i
i f ast uctu e,
p oductio
tech ology,
evacuatio ,
supply,
t a spo tatio
o
dist ibutio
ca
also
be
i co po ated
i to
the
schedule.

Go to Sou ce