India Increases Gas Allocation for Fertilizer Sector Amid LPG Supply Challenges
Govt raises gas allocation for fertiliser sector to 90% as India set to get 62,000 tonnes LPG this week
Hindustan TimesImage: Hindustan Times
India is set to receive over 62,000 tonnes of liquefied petroleum gas (LPG) this week while raising the gas allocation for the fertilizer sector from 70% to 90%. This decision aims to ensure sufficient supply for domestic consumers amid ongoing supply challenges due to the West Asia conflict.
- 01India will receive two LPG cargos totaling over 62,000 tonnes this week.
- 02The government increased gas allocation for the fertilizer sector from 70% to 90%.
- 03Domestic LPG production has increased by 40% since the conflict began.
- 04Approximately 50 lakh (5 million) LPG cylinders are being distributed daily.
- 05Commercial gas supply remains restricted to 70% of requirements.
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India is scheduled to receive two cargos of liquefied petroleum gas (LPG), totaling over 62,000 tonnes, this week as the country continues to address fuel demands for over 332 million households. Amid ongoing supply challenges due to the conflict in West Asia, the government has raised the gas allocation for the fertilizer sector from 70% to 90%. This gas will be supplied from domestically produced natural gas, which is crucial as it serves both as fuel and feedstock for fertilizer plants. The conflict has disrupted LPG supplies, especially since 60% of India's LPG imports come from West Asia, primarily Qatar. In response, domestic LPG production has been augmented by 40%. Currently, state-run oil marketing companies are ensuring that there is no shortage at LPG distributorships, with daily distributions of approximately 50 lakh (5 million) cylinders to around 18 crore (180 million) households in the past five weeks. However, commercial gas consumers, including hotels and restaurants, are still limited to 70% of their requirements. The government is actively monitoring the situation to prevent black-marketing and hoarding.
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The increased gas allocation for the fertilizer sector is expected to stabilize fertilizer production, which is crucial for agricultural output, while ensuring that households receive sufficient LPG supplies.
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