West Asia conflict: Gujarat cuts industrial gas use by 50 pc, domestic LPG supply unaffected
Ahmedabad (PTI): The Gujarat government has imposed a 50 per cent cut on industrial uses of gas amid concerns over the West Asia conflict, a state minister said on Tuesday, while assuring that domestic LPG distribution remains uninterrupted.
The state and the Centre were coordinating closely to ensure that households do not face any shortage of cooking gas cylinders, Gujarat Energy Minister Rushikesh Patel told reporters in Gandhinagar ahead of the assembly session.
Measures were being taken in line with periodic guidelines issued by the central government to prevent panic and ensure the steady availability of LPG for households, he said.
"The state government is constantly working to make sure that no household is left without a cylinder. We are in continuous contact with the central government regarding this," the minister stated.
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He said restrictions have been placed on certain industrial uses of gas to prioritise domestic consumption.
"We have imposed a 50 per cent cut in the gas supply to industries. For fertiliser and milk (processing), there is a cut of about 40 per cent in gas supply," Patel informed.
The decision was aimed at ensuring that domestic users get cooking gas without any disruption, he said.
"This is to ensure that there is no disruption for domestic gas users. The state government is committed to maintaining a regular and steady supply for households," he added.
Responding to a query about reports from Rajkot claiming that hotels and restaurants are getting messages about restrictions on commercial gas cylinders, Patel denied any such directive.
"There is nothing like that," the minister asserted.
"As far as commercial gas cylinders are concerned, there is currently no cut or restriction on them," he said.
The government's immediate focus is to ensure that domestic kitchens continue to function normally and that there is no disruption to household cooking, the minister said.
"To ensure that no individual faces difficulty in getting cooking gas, especially the gas used for domestic purposes, the state and central governments are working together," he added.
The oil ministry has constituted a committee to examine supply issues after a sudden shortage of commercial LPG cylinders alarmed the hospitality sector, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
"For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said in a post on X.
India consumes about 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, as much as 62 per cent is met through imports. The US and Israel's attack on Iran and Tehran's retaliation have shut the Strait of Hormuz - the conduit through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.
As alternate sources are being scouted, the limited supplies available meant the government prioritising supplies to the domestic sector, and in the process, the commercial establishments have suffered.
Earlier on March 6, an industry representative said that around 100 ceramic manufacturing units in Gujarat's Morbi have shut down due to disruption in gas supplies amid the ongoing West Asia conflict.
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
