Nagpur: Confidence Petroleum, one of India's largest private cooking gas bottlers, has successfully navigated a vessel carrying 16,000 metric tonnes of LPG through the Strait of Hormuz, flanked by naval boats. The ship docked at Maharashtra's Devgad port on Thursday, as confirmed by company chairman Nitin Khara to TOI.
The company now anticipates that easing supply constraints will lead to further reductions in prices of auto LPG and cooking gas. The Indian Navy has so far escorted 10 Indian-flagged vessels carrying LPG and crude oil through the conflict zone.
According to top sources, the shipping company agreed to sail through the Strait of Hormuz after receiving assurances of naval protection. The vessels were carefully guided to avoid the risk of being struck by warring nations.
With the ship carrying cooking gas from a UAE company adding to the vessels reaching India, Confidence hinted at further price cuts in the coming days. After an initial round of hikes following the West Asia crisis, the company recently reduced rates for both auto LPG and cooking gas. Auto LPG was cut from Rs 121 per litre to Rs 99 per litre, while cooking gas prices were slashed from Rs 220 per kg during the peak of the crisis to Rs 145 per kg. The company is now open to further reductions to ease the burden on consumers.
Of the 16,000 MT of LPG, around 8,000 MT will be set aside for Bharat Petroleum Corporation Ltd (BPCL). After that, Confidence will have enough stock to last for 10 days.
Currently, two ships of Confidence Petroleum remain stranded in the Strait of Hormuz. However, sources say these vessels have now picked up speed. In March, the company brought two ships carrying 50,000 MT of LPG originally bound for China in a mid-sea deal, offering a hefty premium compared to the earlier buyer. The company has also purchased two vessels from the US, one expected to reach India this month and the other in June.
