100% assured supply of domestic piped gas to homes: Centre
What's the story
The Union Government on Tuesday invoked the Essential Commodities Act (EC Act) to protect the domestic energy market amid global fuel supply pressures due to the West Asia conflict. According to the Petroleum Ministry, the government has issued a control order asking refineries and petrochemical units to enhance liquefied petroleum gas (LPG) production. Key hydrocarbon streams were also diverted to the LPG pool to ensure an uninterrupted supply of cooking gas across the country.
Supply assurance
Priority list for natural gas distribution
The Petroleum Ministry's action has created a priority list for natural gas distribution amid current supply constraints. The new mandate assures a 100% supply of domestic piped gas for homes and compressed natural gas (CNG) for vehicles. Other sectors will have their supplies capped according to their average consumption over the last six months.
Supply caps
Allocation for different sectors
The tea industry, manufacturing units, and industrial consumers connected to the natural gas grid will receive 80% of their average supply. Industrial and commercial natural gas consumers are also capped at 80% of their previous six-month average. Fertilizer plants have been allocated 70% of their previous six-month average supply as resources are rebalanced.
Procurement efforts
India is procuring natural gas through alternative trade routes
India usually imports around 30% of its natural gas through the Strait of Hormuz. However, due to the regional conflict, it is facing logistical challenges. To counter the short supply, India is procuring natural gas through other trade routes to ensure energy security, the ministry noted. The Petroleum Ministry has also formed a committee to look into LPG requirements for restaurants and automobiles amid these supply constraints.
Production boost
Monitoring period extended to check irregularities in LPG distribution
The government has also dismissed concerns of a possible shortage of commercial cylinders. India Today, citing sources, said oil refineries have increased LPG production by around 10% after earlier directions. Additional administrative measures have been put in place to prevent hoarding and malpractice. The monitoring period for checking irregularities in LPG distribution has also been extended from 21 days to 25 days, the sources added.