LPG Supply Alert: Centre Mulls Strategic Reserves Amid Middle East Crisis, Nayara Refinery Shutdown

Amid the Middle East crisis, the central government is considering creating strategic storage to secure the country's LPG supply. This move is being taken due to the temporary shutdown of Nayara Energy's Vadinar refinery.

Nayara Energy's Vadinar refinery in Gujarat is scheduled to shut down for a few days from April 9. This shutdown could lead to a nationwide LPG supply shortage.

Nayara Energy will shut its 400,000 barrels per day Vadinar ‌refinery ⁠for maintenance from April 9, tightening supply of liquefied petroleum gas in the country, Reuters quoted Sujata Sharma, joint secretary in the federal oil ministry said.

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What is Government's Plan B?

According to TOI report, a senior government official said, “The government is considering creating LPG reserves as a buffer against possible supply disruptions.”

The decision comes at a time when petroleum companies have postponed planned maintenance shutdowns of their units to meet domestic demand.

Impact on millions of families 

Millions of households in India rely heavily on LPG as their domestic cooking fuel. Any disruption will directly impact ordinary consumers.

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The government aims to reduce dependence on imports and maintain supplies in case of an emergency. Such preparations are essential given the situation in the Strait of Hormuz.