IOC ties up 50% additional LPG supplies to meet rising demand
NEW DELHI: India’s largest oil refiner and fuel retailer IndianOil has tied up 50% more supplies of bulk LPG for April and May to ensure uninterrupted availability for cooking gas refills for households.
India is the second-largest consumer of LPG in the domestic sector and imports large quantities to make up for limited capacity of state-run refineries to produce the fuel, though the country is a net exporter of petroproducts. Nearly 90% of the imported LPG comes from OPEC countries, with Saudi Arabia and UAE topping the list. Oil minister Dharmendra Pradhan has been connecting with his Saudi and UAE counterparts — among other — in the last few days to seek additional supplies of the fuel.
LPG supplied in 14.2-Kg cylinders is the main cooking fuel for households in India. LPG demand has increased nearly 2% in March, bucking the trend of demand for all other fuels – such as petrol, diesel and jet fuel – altogether showing an 18% drop, the lowest in a decade, as the lockdown to check coronavirus spread put serious curbs on economic activities across sectors. LPG consumption has been boosted by families being confined to their homes.
