NEW DELHI: Drawing lessons from the disruption in energy supplies caused by the West Asia conflict, the government has directed oil marketing companies to establish a 30-day strategic reserve of LPG. This reserve will be in addition to the 45-day rolling stock already maintained by oil retailers to meet demand for both domestic and commercial gas cylinders.
Strategic Reserve to Enhance Energy Security
Petroleum ministry joint secretary Sujata Sharma stated that the reserve would be a medium- to long-term strategy for securing key energy supplies. While India has increased domestic LPG production and diversified imports from the US, Norway, Canada, and Algeria, the need for a strategic reserve has become imperative in light of recent crises. Sharma also mentioned that similar efforts are underway for crude oil reserves.
Current LPG Reserves and Consumption
India currently holds nearly 1.4 lakh tonnes of LPG in two underground caverns located in Mangaluru and Visakhapatnam. Before the conflict, daily LPG consumption was estimated at 80,000 tonnes, but it has since decreased to 72,000 tonnes due to demand management measures and seasonal variations. The new 30-day reserve aims to provide a buffer against unforeseen supply disruptions.
This initiative underscores the government's commitment to energy security and resilience in the face of global uncertainties. By building additional storage capacity, India seeks to protect its citizens and economy from potential shortages and price volatility in the LPG market.
