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Indian Oil Corporation Implements Lock-In Rule for LPG Supply Stability

The Indian Oil Corporation has announced a 25-day lock-in rule for LPG bookings to stabilize supply amidst concerns over global tensions affecting fuel imports. While all bottling plants in the Northeast are operating normally, this measure aims to prevent panic buying and ensure a steady supply of cooking gas. Despite increased domestic production, India remains heavily reliant on imports for LPG, making the supply chain vulnerable to international market fluctuations. Learn more about the implications of this new regulation and the current state of LPG availability in India.
 

LPG Supply Update from Indian Oil Corporation

Guwahati, March 8: The Indian Oil Corporation (IOC) has announced that there is currently no LPG shortage, but a new 25-day lock-in rule will be introduced to stabilize demand and normalize the supply chain.

According to an IOC representative, all eight bottling facilities in the Northeast are functioning normally, and distributors have adequate stock available. This announcement comes amid concerns that the ongoing military tensions in West Asia might affect fuel imports.

Under the new regulation, customers will only be able to order a second cylinder after a 25-day period following the delivery of their first one.

The official explained, “This lock-in rule was previously in place but not enforced rigorously. Its implementation now aims to prevent panic buying, hoarding, or diversion of supplies. This measure will assist in stabilizing demand and normalizing the supply chain.” Typically, customers can order up to two cylinders each month and a total of 15 cylinders annually.

In response to supply chain challenges in West Asia, the government had previously instructed refiners to boost LPG production and limit sales to three state-owned oil marketing companies: IOC, Bharat Petroleum, and Hindustan Petroleum. This directive is intended to ensure a steady supply of cooking gas domestically.

Despite an increase in local production, India continues to depend significantly on imports to satisfy its LPG needs, with approximately 60% of its requirements being met through imports. This reliance makes the domestic supply susceptible to fluctuations in global prices and shipping disruptions.