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'Steps taken to enhance production': Hindustan Petroleum after LPG supply hit in India amid US-Iran war
Hindustan Petroleum said steps are being taken to ensure that cooking gas remains available for households and key public services.
As concerns grow over the availability of LPG amid disruptions in global fuel supply triggered by the ongoing Iran-US conflict, Hindustan Petroleum has said steps are being taken to ensure that cooking gas remains available for households and key public services.
In a statement addressing the situation, the company said, “In light of current geopolitical disruptions affecting global fuel supply, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions.”
What hotel associations said
Several hotel associations across India have reported a shortage of commercial LPG cylinders, just days after the prices of both commercial and domestic gas cylinders were increased nationwide. Hotel associations in Bengaluru and Chennai flagged disruptions, warning that restaurants in the respective cities may be forced to halt operations on Tuesday, March 10, if the LPG supply was not restored.
The development comes amid a hike in oil prices globally due to the ongoing conflict between Iran and the US which has triggered unrest across the Middle East. The situation has triggered concerns of a further spike in energy prices, given Iran's targeting of the Strait of Hormuz, a key shipping lane through which a fifth of the world’s oil is transported.
The Chennai Hotels Association and the Bangalore Hotels Association on Monday claimed that commercial LPG supply to restaurants in both cities have taken a massive hit. "Since the gas supply has stopped, the hotels will be closed from tomorrow," the association in Bengaluru said, as quoted by news agency PTI.
The Chennai hotels body issued a statement seeking Prime Minister Narendra Modi's intervention in the matter. “Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut down,” the body said in a tweet.
What did govt say?
Amid oil price hike concerns and reports of LPG shortage to hotels in India, the government issued a statement on Monday, ordering oil refineries to increase LPG production and use such extra production for domestic use.
“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing,” the ministry of Petroleum and Natural Gas said in a statement. The ministry also said that a committee has been constituted to review the representations for LPG supply to restaurants.
The prices of LPG cylinders for commercial use was hiked by ₹115 and for domestic use by ₹60 last week.
