The Strait of Hormuz has been closed due to the Iran-America-Israel war, which is having a major impact on the supply of LPG and natural gas. In such a situation, the Petroleum Ministry of India has issued a clear priority list for the allocation of natural gas. If there is a shortage of gas, it has now been decided which sector will get how much gas first.
In which sectors there will be no gas cut?
The government has said that no shortage will be allowed to domestic users and essential sectors. Therefore, they will get 100% supply, that is, there will be no cut. These:
- Piped Natural Gas (PNG) to households: The gas coming directly from the pipes in the houses, which is used in the kitchen.
- CNG: Compressed Natural Gas for vehicles, autos and public transport.
- LPG Production: Gas used to make domestic cooking gas cylinders.
- Fuel required to run pipelines: The gas itself is used to transport gas.
These sectors are related to the everyday life of common people, hence the government has given them top priority. Domestic PNG and CNG will be kept completely safe so that people do not face any problem in cooking or driving.
In which sectors will there be gas cuts?
The central government will cut gas in the share of sectors related to the industry. They will get less gas based on past average usage. This means that only a small percentage of the gas used by a company in the last few months will be given.
- Tea Industry and Other Manufacturing Sectors: Only 80% of the average consumption of the last 6 months.
- Fertilizer Companies: 70% allocation.
- Oil Refineries: 65% allocation.
The Hotel Association has already warned that if commercial gas is not available, hotels in cities like Bengaluru will start closing. The government’s focus is on the common man, hence priority has been given to domestic and essential sectors. The situation is being continuously monitored and further steps will be taken if necessary.
Why did the central government decide to cut gas distribution?
This decision has been taken because India imports a large part of its LPG requirement and most of it comes from the Middle East via the Strait of Hormuz. Due to the war, imports have stopped, due to which there is already a shortage in commercial LPG (hotels, restaurants). To save domestic LPG, the government has given orders to refineries to produce more and has increased the booking interval of domestic cylinders from 21 to 25 days so that the stock can be saved.
The Petroleum Ministry says that the stock of LPG in the country is enough for 40 days. Also, alternative imports from countries like America and Australia are being increased. But if the crisis continues for a long time, the industry will be affected, such as production in tea gardens will be reduced or the work of fertilizer companies will be affected.
