New Delhi: Oil marketing companies (OMCs) or firms that involved in liquefied petroleum gas (LPG) supply are making continuous efforts to maintain smooth distribution across the country amid global tensions triggered by the Iran war, Nitin Khara, Chairman and Managing Director (CMD) of Confidence Petroleum India Limited (CPIL), said on Friday.
In conversation with IANS, Khara said that while global developments have created challenges for LPG supply, the company’s priority remains ensuring uninterrupted availability for dealers and consumers in India.
He said CPIL is reviewing the LPG supply situation on a daily basis.
“Every morning, we assess how to ensure gas supply for that day. Dealers from across the country keep calling throughout the day, and we try our best to ensure timely delivery,” he said, adding that some difficulties have emerged due to limited availability.
He explained that LPG importers are currently facing a major logistical issue, as two LPG vessels are stranded near sea ports and are unable to either enter or leave. This has disrupted the regular supply chain.
Typically, the company imports around 40,000 metric tonnes of LPG every month, but the current situation has affected this cycle, Khara told IANS.
Khara noted that the initial plan was to unload about 850 metric tonnes from the shipment, while the remaining quantity was to be supplied to Norway-based energy company Equinor’s Malaysian operations under a prior commitment.
Although there was no formal sale-purchase agreement, the company generally honours its commitments, he added.
However, several dealers requested that the gas be supplied to Indian consumers instead.
“Considering these requests, we are evaluating the possibility of utilising the available LPG within the country to provide relief to domestic consumers,” Khara said.
He also said the state governments have suggested unloading the gas locally to strengthen supply in the domestic market.
If the LPG is retained in India, it could help ensure additional supply for around 12 to 13 days, which may provide some relief to the market.
Khara added that the ongoing global conflict and disruptions have affected LPG production and supply.
Even if the situation normalises immediately, it could take nearly four months for the entire supply chain to stabilise due to refinery damage, limited production and a shortage of LPG vessels.
