LPG shortage likely during festival season

The country is expected to face yet another shortage of liquid petroleum gas (LPG) between late October and December, largely attributed to Reliance shutting down its plants in Jamnagar for maintenance.

According to a senior executive in Hindustan Petroleum, the shortage is likely to be 350,000 metric tonne, and at least a shortage of 8,000 tonne per day.

Market sources, however, indicate that the largest supplier Indian Oil Corporation (IOC) has already made provisions to make up for at least half the shortfall. "We have made arrangements to cover at least 30 per cent of the expected crunch, and the balance 20 per cent is also likely to be taken care of. This is expected to ease the situation," he said.

HPCL is looking to bridge the gap by procuring from Reliance in Patalganga, and Haldia Petrochemicals, to cater to region wise demand. Besides, there is an overall rise for LPG in the international markets during the winter months, which makes the imports dearer.

In India, the demand between October and December increases by at least 20 per cent due to the festival season. Sources, however, added that the consumption in the country is skewed with urban consumers accounting for a consumption of 120 kg per consumer, while its about half of this at 60 kg per consumer in rural areas.

This would come as a second blow to customers, after the shortage faced across many parts of the countries including a number of towns and cities in Maharashtra, following the heavy rains and floods in August, as well as Kerala and regions in the North East.