Government Extends LPG Cylinder Booking Period Amid Market Uncertainty

New LPG Booking Regulations Introduced

The Indian government has decided to extend the minimum waiting period for ordering a domestic LPG cylinder refill from 21 days to 25 days. This change aims to curb hoarding behavior observed in the market, particularly in light of the ongoing tensions related to the conflict in Iran.

Officials have reassured the public that there is an adequate supply of LPG in the country. The adjustment in booking time is a strategic move to better manage inventory levels.

This decision comes in response to a notable increase in demand, which has surged by 15 to 20 percent due to panic buying, driven by concerns over potential supply disruptions stemming from the escalating conflict in the Middle East.

Typically, an average household consumes around 7-8 LPG cylinders of 14.2 kg each year, and under normal circumstances, a refill is not required in less than six weeks, as noted by an official.

In related news, a senior official announced that there will be no immediate increase in petrol and diesel prices, despite international crude oil prices surpassing $100 per barrel. Major oil marketing companies, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, are expected to absorb the current cost pressures for the time being.

The government is actively monitoring global oil market trends but has no immediate plans to adjust retail fuel prices.

Additionally, Parliament was informed that India currently possesses a total storage capacity for crude oil and petroleum products sufficient for 74 days. This capacity is crucial for managing potential disruptions caused by geopolitical conflicts.

Minister of State for Petroleum and Natural Gas, Suresh Gopi, stated that the government has established Strategic Petroleum Reserves with a total capacity of 5.33 million metric tonnes (MMT), designed to buffer against short-term supply shocks. This reserve can cover approximately 9.5 days of crude oil needs. Furthermore, oil marketing companies in India have storage facilities that can sustain crude oil and petroleum products for 64.5 days, bringing the total national storage capacity to 74 days.