PSU oil firms ramp up LPG imports

State-run oil marketing companies have braced themselves for the approaching festival season by stepping up imports of cooking gas and tightening their distribution systems, following an acute shortage of liquid petroleum gas (LPG) in the country following the shutdown of Reliance'sJamnagar refinery between October and December.

During the festival season, the country's cooking gas consumption increases by almost 20 per cent. Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have all increased the overall production of LPG by 5 per cent to 10 per cent, and have tightened their supplies to avoid any shortages.

A senior executive from HPCL said, "We have intensified our sales forces and have increased daily routine checks on sales offices."

He further added that the company was also checking on refill bookings more regularly, to ensure that the gaps in distribution are closed.

HPCL has a total of 82 sales offices across the country. The total demand for LPG cylinders from HPCL is 200 thousand metric tonne (TMT) per month with one metric tonne amounting to roughly 70 cylinders, of 14.2 kg each (costing approximately Rs 300 per cylinder).

According to R K Singh, executive director, LPG, BPCL, "We have met the demand up to now, and are more keenly scrutinising the distribution channels." He added that the company runs checks on zonal offices unannounced, and informed that the industry has already made provisions in case of further dry-outs.

BPCL has a total of 120 sales offices across the country. Fifteen cargoes of LPG are already being imported from the Middle East, amounting to a total import of 13 TMT, and efforts are on to float more tenders.

An IOC official said that along with additional imports, India also has an inventory of 180 TMT, across the industry. India's average family would consume 120 kg of cooking gas in a year. While HPCL and BPCL supply five lakh cylinders of cooking gas in a year, Indian Oil provides 10 lakh cylinders across the country. 

FESTIVE FEVER

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• Indian Oil, BPCL, HPCL have increased overall production of LPG by 5 per cent to 10 per cent
• They have tightened supplies to avoid any shortages
• HPCL has intensified daily checking of sales offices
• BPCL is scrutinising its distribution channels closely