To ease LPG pressure, Centre allocates PDS kerosene to states

New Delhi: Due to squeezed LPG supplies caused by the ongoing West Asia conflict, the Centre has made an ad hoc allocation of Public Distribution System (PDS) kerosene to States and Union Territories for household use.

The Ministry of Petroleum and Natural Gas issued a notification on March 29, granting temporary exemptions under the Petroleum Act, 1934, and Petroleum Rules, 2002.

The order, which came into immediate effect, will remain valid for 60 days or until further orders. As per the notification, up to two designated PSU oil marketing company (OMC) service stations per district (preferably company-owned) will be allowed to store up to 5,000 litres of kerosene, subject to safety norms.

Agents and dealers have been exempted from obtaining fresh licences for decanting kerosene at these stations, and existing tank vehicles will not require additional permits.

Meanwhile, 19 ships carrying LPG, crude oil, and LNG destined for India are currently stranded in the Strait of Hormuz due to the escalating conflict. These include 3 LPG vessels, 4 crude oil tankers, and 3 LNG carriers. So far, eight Indian-flagged vessels have sailed out safely.

In a related development, the conflict has caused a sharp 60% surge in natural gas feedstock prices for fertiliser plants, significantly increasing the government’s subsidy burden. Natural gas supply to fertiliser units has been restricted to 80% of demand, forcing companies to purchase costly LNG from the spot market.

Aparna S Sharma, Joint Secretary, Department of Fertilisers, said that the country has adequate stocks of fertilisers to meet demand for the upcoming Kharif season.

"The prevailing situation is vulnerable, but we have dealt with it strategically," she told media persons here.

The Gulf region, which normally supplies 20-30% of India’s urea, 30% of DAP, and nearly 50% of LNG requirements, remains severely impacted, leading to higher input costs and freight charges.