India invokes Essential Commodities Act, orders near real-time oil-gas data
What's the story
The Indian government has invoked the Essential Commodities Act, mandating oil and gas companies to share their data with the Petroleum Planning and Analysis Cell (PPAC). This move comes in light of a global energy crisis triggered by the ongoing conflict in West Asia, according to an official cited in a report by Hindustan Times. The PPAC, which is already responsible for collecting oil and gas sector data, will now get granular information almost in real-time.
Energy update
Crude supply is adequate, petrol pumps functioning normally: Sharma
Sujata Sharma, joint secretary in the Ministry of Petroleum, assured on Thursday that crude supply is adequate and refineries are running at full capacity. She also said petrol pumps are functioning normally with no dry outs reported. However, the government is taking these steps to ensure preparedness for any exigencies that may arise from the ongoing global energy crisis.
Supply diversification
Qatar's energy diversification strategy
An Iranian attack on Qatar's energy infrastructure has raised concerns about supplies from Qatar. Despite this, the country is managing its energy needs through diversified sourcing. It imports crude oil from around 40 countries and natural gas from the United States, Australia, Norway, and Russia. This strategy has helped India to mitigate the impact of supply chain disruptions due to geopolitical tensions.
Fuel transition
Encouraging switch from commercial LPG to PNG
Sharma also revealed that commercial liquefied petroleum gas (LPG) users are being encouraged to switch to piped natural gas (PNG). This is being done through city gas distribution companies with incentives and quick connections where networks exist. She also stated that in the last two weeks, about 125,000 new domestic and commercial PNG connections have been given.
Demand management
Efforts to curb hoarding and black marketing
On the demand side, states and local administrations have been roped in to curb hoarding and black marketing. Control rooms have been activated, and raids intensified across states. Oil marketing companies are also conducting inspections as part of these efforts. Sharma said customers are increasingly adopting online booking for gas cylinders, which has helped reduce panic bookings significantly.