Government cites Hormuz disruption and warns of cuts.
On Wednesday, India’s Oil Ministry ordered more than 300 million households to switch within three months from bottled gas to piped natural gas in areas where a network is available, under threat of supply cuts.
“There are, and are expected to continue, supply constraints due to the ongoing blockage of the Strait of Hormuz… Increasing the supply of piped natural gas will free up liquefied gas and reduce dependence on a single fuel,” the Oil Ministry stated.
The directive states that users who do not transition to piped natural gas (PNG) could lose access to liquefied petroleum gas (LPG), about 60% of which the country imports, mostly through the strategic passage between Iran and the Arabian Peninsula.
The Indian government acknowledged that LPG supply “remains affected by the geopolitical situation,” although it stressed that it remains a top priority alongside piped gas and other essential sectors.
According to the Ministry of Petroleum, “all retail outlets are operating normally across the country,” and there are sufficient reserves of gasoline and diesel.
The government confirmed that panic buying has been recorded in some areas due to rumors, boosting demand in recent days, and urged the public to remain calm.
“The natural gas infrastructure (PNG and CNG) is undergoing major reforms to facilitate business activity. This is a crisis turned into an opportunity,” said Oil Ministry Secretary Neeraj Mittal.
The crisis has forced the government to step up raids against hoarding, with thousands of inspections of the underground gas cylinder market across the country, while in Mumbai up to 20% of restaurants warn of imminent closure due to a lack of resources.
[ SOURCE: teleSUR ]
