Centre asks fuel retailers to maintain 30-day LPG reserves as supply concerns rise amid West Asia tensions

THe Centre has directed state-run fire retailers to significantly heighten liquified crude oil gaseous state (LPG) storage infrastructure and maintain reserves sufficient to meet at least 30 days of demand, amid concerns over supply disruptions caused by the recent conflict in West Asia."We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it," Sujata Sharma, joint secretary in the petroleum ministry, said on Friday, according to news agency PTI.The government has asked state-owned oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -to prepare plans for creating additional LPG storage capacity over and above their regular commercial inventories.Also Read | Govt eases LPG surrender rule, allows reconnectionWhat is happening?The move comes after the three-month-long conflict in West Asia disrupted global energy supply chains, affecting India's energy imports from the Gulf region.Around 40 per cent of India's crude oil imports, 65 per cent of its natural gas supplies and 90 per cent of its LPG imports originate from Gulf countries.While India has managed to secure alternative supplies of crude oil and natural gas, disruptions in LPG imports have forced authorities to regulate supplies to commercial consumers.Sharma also said that the government is working to expand the country's crude oil storage capacity, although she did not share further details.The government maintained that India currently has adequate stocks of petrol, diesel, LPG, crude oil and natural gas. It added that domestic refineries are operating at optimum levels and LPG production has reached an all-time high of around 52,000 tonnes per day.Also Read | Chandigarh: INLD demands rollback of fuel, LPG prices by May 31Why surge in fuel sales?"No dry out reported at any LPG distributorship," Sharma said, while adding that "abnormal sale is being observed at many petrol pumps".According to Sharma, the surge in fuel sales is being driven by agricultural demand and a shift in consumer purchases from bulk buyers and private fuel retailers to state-run outlets, largely because of pricing differences.More than 150 districts across the country have recorded over 30 per cent growth in petrol sales, while 14 districts have witnessed sales more than doubling. Diesel sales have increased by over 30 per cent in 156 districts, with six districts reporting growth exceeding 100 per cent.She further said that sales by private fuel retailers have fallen by 38 per cent for diesel, while bulk diesel sales by state-run oil marketing companies have declined by 29 per cent.Although petrol and diesel sold through retail outlets of state-owned companies continue to be priced below cost, bulk consumers such as telecom towers are charged market-linked rates. Private fuel retailers have also increased petrol and diesel prices more sharply than their public sector counterparts.IOC, BPCL and HPCL, which together account for nearly 90 per cent of India's fuel retail market, have raised petrol and diesel prices by around ₹7.50 per litre since May 15.The government said it is closely monitoring the situation and has advised states and Union Territories to form special enforcement squads to prevent hoarding and black marketing. Consumers have also been urged not to indulge in panic buying and to purchase fuel only through authorised channels.