Amid the shortage of liquefied petroleum gas (LPG) due to the short supply amid the US and Israel's attack on Iran, the India government is asking consumers not to panic about gas supplies and to conserve energy, according to a Reuters report on Wednesday.
India is the world's second-largest importer of LPG, the main source of cooking fuel for a large part of the population, with around 333 million homes having LPG connections.
The Indian government has invoked emergency powers and has asked refiners to ramp up LPG production to the maximum capacity and cut sales to the Indian industry in order to meet supply to homes.
The government's measures have increased local LPG output by 25%, the report quoted Sujata Sharma, a joint secretary in the Indian oil ministry, as saying.
"Panic booking (of LPG cylinders) and hoarding behavior have been driven by misinformation," Sharma said.
Sharma said LNG imports of 47.4 mmscmd have been impacted by the supply constraints and force majeure by its top supplier, Qatar.
"The Middle East conflict has posed challenges for the world, but India's fuel demand is being met. The Government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies and protect households and priority sectors," she added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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