The government has asked state-run fuel retailers to expand liquefied petroleum gas (LPG) storage capacity to cover at least 30 days of demand, as supply disruptions linked to the West Asia conflict highlighted the need for larger reserves, PTI reported.“We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it,” Sujata Sharma, Joint Secretary in the Petroleum Ministry, told reporters on Friday.State-run oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have been asked to prepare plans for creating additional storage capacity over and above regular commercial inventories.The move comes after the conflict in West Asia disrupted global energy supplies. India faced disruptions in supplies from the Gulf region, which accounts for around 40 per cent of the country’s crude oil imports, 65 per cent of natural gas supplies and 90 per cent of LPG imports.While alternative arrangements were made for crude oil and natural gas supplies, LPG availability was impacted, leading to regulated supplies for commercial consumers.Sharma said India is also working on expanding crude oil storage capacity, though she did not provide details.The government maintained that the country currently has adequate stocks of petrol, diesel, LPG, crude oil and natural gas. Refineries are operating at optimum levels and LPG production has reached an all-time high of around 52,000 tonnes per day.“No dry out reported at any LPG distributorship,” Sharma said, adding that “abnormal sale is being observed at many petrol pumps”.According to her, higher fuel sales are being driven by agricultural demand and a shift by consumers from private retailers and bulk suppliers to state-run outlets because of price differences.More than 150 districts have recorded over 30 per cent growth in petrol sales, with 14 districts reporting sales that have more than doubled. Diesel sales have risen over 30 per cent in 156 districts, while six districts have seen growth exceeding 100 per cent.Sharma said sales by private fuel retailers have fallen 38 per cent for diesel, while bulk diesel sales by state-run oil marketing companies have declined 29 per cent.Petrol and diesel sold through retail outlets of state-owned companies continue to be priced below cost, while bulk consumers such as telecom towers are charged market rates. Private retailers have also raised fuel prices more sharply than public sector companies.IOC, BPCL and HPCL, which together control about 90 per cent of the fuel retail market, have increased petrol and diesel prices by around Rs 7.50 per litre since May 15.The government is reviewing the situation and has advised states and Union territories to form special squads to check hoarding and black marketing. Consumers have also been urged to avoid panic buying and purchase fuel only through authorised channels.
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