Crude Oil Crisis: The government's decision to prevent cooking gas shortages; refineries will now have to comply with these conditions

Crude Oil Crisis: In light of the global unrest and rising tensions in the Gulf countries, the Indian government has gone on alert. To ensure that the common man's kitchen is not affected by inflation or gas shortages, the government has issued strict instructions to petroleum refineries.

Emphasis on producing only cooking gas

According to a report in India Today, the government has clearly instructed oil refineries to utilize their capacity to produce as much LPG (Liquefied Petroleum Gas) as possible. Refineries typically produce other chemicals along with gas, but for now, priority will be given solely to domestic cooking gas.

No Entry for Petrochemicals

LPG is primarily made from a mixture of propane and butane. Companies often use this gas to produce plastics or other petrochemicals. The government has now banned this practice. According to the order, this gas will now be reserved for cooking gas production instead of industrial use.

Stocks Must Be Sold Only to Government Companies

All refineries, both private and government, have been ordered to sell all their LPG stock to only three government companies:

• Indian Oil (IOC)
• Bharat Petroleum (BPCL)
• Hindustan Petroleum (HPCL)

The aim is to ensure that the gas supply chain remains under complete government control and there is no scope for black marketing or shortages.

Why Was This Decision Needed?

• Foreign Tensions: Tensions are rising in the Middle East (West Asia). Sea routes like the Strait of Hormuz, through which much of India's oil and gas comes, are at risk of supply disruptions in the event of a war.
• Import Dependence: India purchases approximately 60% of its LPG needs from other countries. If global oil prices rise or supplies are disrupted, India could face shortages.
• Increasing Demand: Following the Ujjwala Yojana, cylinders have reached millions of new households across the country. Today, LPG is no longer a luxury, but a necessity for the common man. According to reports, India's petroleum consumption could reach 250 million tons by fiscal year 2027.