Now Reading: Government cuts LPG booking period to 25 days as supply eases
-
01
Government cuts LPG booking period to 25 days as supply eases
The Union government has shortened the booking period for domestic LPG cylinders to 25 days from the earlier 45-day rule, which was introduced in March after the West Asia war disrupted supplies.…
The Union government has shortened the booking period for domestic LPG cylinders to 25 days from the earlier 45-day rule, which was introduced in March after the West Asia war disrupted supplies. India imports up to 65% of its annual LPG requirement, making it the world's second-largest buyer of cooking gas, with 340 million consumers.
The US now supplies 60% of India's 33 million tonnes of LPG imports worth $11 billion, up from less than 10% before the war. Algeria and Angola have also emerged as new suppliers. Domestic LPG production during April-July this fiscal rose 28.3% to 5.47 million tonnes, driven by a government directive for refineries to maximise output.
The petroleum ministry set LPG production targets for 21 refineries and upstream companies for the first time, with a combined potential of 63,810 tonnes per day. The government also approved an incentive scheme to promote piped natural gas connections and asked consumers with PNG infrastructure to switch from LPG, aiming to reduce import dependence.
Indian Opinion Analysis
India's reliance on imported cooking gas, which meets 65% of its annual demand, has long made it vulnerable to supply shocks in West Asia. The region supplied 90% of imports before the war began in 2023. The shift to US LPG from a 10% share to a dominant 60% within months required the government's active push through term contracts and production targets. For 340 million consumers, the shorter 25-day booking window signals that supply has stabilised enough to relax emergency measures. The next thing to watch is the sustained share of US imports once spot prices normalise and whether domestic production targets of 63,810 tonnes per day stay on track through the remaining fiscal year.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
