LPG Storage Buffer: In view of the LPG crisis in the country amid the tense atmosphere in West Asia, India is now planning to create a 30-day LPG emergency reserve so that there is no problem in supply ever again.

India ready to create 30-day LPG reserve

India 30-day LPG storage buffer plan: Amid the US-Iran war and tensions in West Asia, the blockade of the Strait of Hormuz impacted global crude oil supplies. India was no exception. However, it has now learned its lesson.

According to an ET report, state-owned oil marketing companies (OMCs) are working on a plan to create a 30-day strategic LPG reserve. Under this plan, Bharat Petroleum Corporation Limited (BPCL) is planning to increase its LPG storage capacity from approximately 200 TMT to 340,000 metric tons (TMT). This will involve a significant investment of approximately ₹5,000 crore. Following BPCL's lead, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) also plan to increase their storage capacity.

Supply disruptions no longer have any impact.

According to an ET report, a senior industry official, speaking on condition of anonymity, said the central government is considering building a roughly 30-day LPG inventory, but the quantity of this stock has not yet been finalized. This will be based on total LPG consumption, imports, and supply needs after diversifying sourcing. This step will be taken to strengthen the country's energy security and protect domestic and commercial consumers from any major supply shocks in the future.

India learned its lesson.

India imports a large portion of its LPG needs, with approximately 90% coming from Gulf countries via the Strait of Hormuz. During the war between Iran and the United States, when supplies from the Strait of Hormuz were blocked, India's imports declined. This forced the government to limit LPG supplies to the commercial and industrial sectors. Learning from this crisis, India now aims to reduce its dependence on Middle Eastern countries for LPG imports.

What is India's current storage capacity?

According to data from the Petroleum Planning and Analysis Cell (PPAC), there are currently 214 active LPG bottling plants in the country. These hold an average of 4-7 days of stock (average 5 days). When import terminals and other storage facilities are included, the average coverage is only 18 days.