Centre prioritizes domestic LPG supply as oil price surge raises supply risks

New Delhi: India has tightened access to domestic cooking gas as the escalating conflict in West Asia threatens fuel supplies and drives volatility in global energy markets.The Centre has prioritized household LPG (liquefied petroleum gas) consumption, and introduced a lock-in period between cylinder bookings, two people aware of the matter said.“The priority for LPG supply in this situation is domestic consumers. Further, in order to curb hoarding of cooking gas, a 25-day lock-in period has been implemented,” one of the two people mentioned above said on condition of anonymity.

The earlier lock-in period was initially around 15 days, which was raised to 21 days last week.To be sure, the move may result in supply constraints for industrial users like ceramics makers, and commercial consumers such as hotels and restaurants.As reported by Mint, the ministry of petroleum and natural has also asked refiners to increase LPG production by diverting feedstock away from the manufacture of non-essential products, including petrochemicals.The measures come amid a sharp surge in global oil prices that is raising concerns of wider disruption across the energy supply chain. On Monday, Brent crude prices surged over 25% to cross the $100-per-barrel mark for the first time in four years.“All oil refining companies operating in India shall maximize and ensure that propane and butane streams produced, recovered, fractionated or otherwise available with them are utilized for production of LPG and make it available to the three public-sector OMCs, IOCL, HPCL and BPCL only,” read the order dated 5 March.Further, in a revised order issued on Monday, the government said all oil refining companies in the country, including those in special