India’s government reassured the public that the country’s crude inventory is at sufficient levels to meet demand for the next two months. The Petroleum and Natural Gas Ministry’s Joint Secretary, Sujata Sharma, highlighted that despite a significant increase in global crude prices, there has been no corresponding rise in petrol and diesel prices for domestic consumers. Oil marketing companies are facing challenges due to under-recoveries on petrol and diesel sales.
Sharma also mentioned that LPG deliveries are operating normally, with a 60% import dependency. Despite a 44% increase in international LPG prices, there has been no hike in LPG cylinder prices for domestic consumers. The government has expanded the PNG network and provided 3.3 lakh new connections in March, ensuring a steady supply of natural gas for households and the CNG transport sector.
In response to the Iran war’s impact on LPG costs, the Ministry of Petroleum and Natural Gas clarified that only commercial LPG prices have been raised, while domestic LPG rates remain unchanged to shield households from cost spikes. Public sector oil marketing companies are currently facing an under-recovery of Rs 380 per cylinder at existing prices.
