With almost 40 days into the West Asia war, India is in a comfortable position on the supply side of crude and LPG, which it is sourcing from a variety of geographies, A S Sahney, Chairman of Indian Oil Corporation Limited (IOCL), said here on Friday.
“Initially, we used to procure crude from only 25 geographies, today we are procuring from 41 geographies. Similarly, LPG, most of it was coming from the one source only, but now we are getting LPG from right across the globe… everywhere. So, that is how we are maintaining the supplies and we intend to maintain the supplies in a similar fashion going forward,” he told media persons in an interaction.
He did not disclose the proportion of crude sourced from various countries and the pricing at which these were now being procured.
“In the crude side we are absolutely comfortable because our refining capacities are holding us very good. The refining capacities are operating at almost full level,” he said. Regarding LPG, he said there are “constraints” and hence they have prioritised domestic LPG.
Commercial LPG quota
He also announced the increase of the commercial LPG quota for Tamil Nadu to 70 per cent of original levels, effective immediately, at the OMC level, following a detailed review of the fuel status here with various stakeholders and State government representatives. Essential sectors such as hospitals and educational institutions are being provided 100 per cent of their supply requirements without any restrictions, he added.
Domestic LPG remains the top priority, he reiterated, noting that OMCs are currently meeting 100 per cent of the State’s daily demand of approximately 5 lakh cylinders. We are also putting in best efforts to reduce the current waiting period of around eight to eight days that persists in certain areas, he added.
Regarding complaints by commercial establishments in the increased allocation of LPG not reaching them, he said that in TN, a big chunk of commercial gas delivery is handled by private players, who are a bit more constrained in their supplies. We, the OMCs, are taking the total load of all the people, he added.
Responding to reports of delays exceeding 20 days in parts of suburban Chennai, Sahney said a detailed analysis was conducted last night, and the issues in these pockets will be addressed by Saturday evening.
“I have been told that the State government has conducted over 10,000 sudden inspections; OMCs have executed more than 1,500 unannounced raids across Tamil Nadu, and we are taking strict actions against defaulting distributors,” he added.
The Chairman also stressed that the move from LPG to PNG could benefit consumers and the country in many ways. “First, it is cleaner fluid. The second is, it is cheaper [than LPG] in most parts of country. Third, its availability is much more diversified, from various geographies,” he said.