Government Asks IOC, BPCL and HPCL to Build LPG Storage Capacity for 30 Days of Demand

India has asked state-owned fuel retailers to draw up plans for expanding Liquefied Petroleum Gas (LPG) storage capacity to cover at least 30 days of demand, as per PTI reports.  

The proposal relates to reserves beyond the stocks companies maintain for regular supply and distribution. The development was outlined by Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, during a media interaction on Friday. 

Additional Capacity Under Consideration 

Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have been asked to assess the requirement for additional LPG storage facilities. 

The 3 companies are responsible for a large share of the country's LPG marketing and distribution. The proposed reserves would supplement existing commercial inventories that support day-to-day operations. 

Concerns Over Supply Disruptions 

The push for larger LPG reserves comes at a time when developments in West Asia have raised concerns about disruptions to energy supplies and trade routes. 

India imports a substantial portion of its energy requirements, making global supply conditions an important factor for domestic fuel availability. Maintaining larger inventories can provide additional stock during periods of disruption or logistical delays. 

Crude Oil Storage Also Being Reviewed 

Apart from LPG, the government is also examining the scope for increasing crude oil storage capacity.  

India already operates strategic petroleum reserves intended for use during emergencies or supply interruptions. Any expansion would add to the country's existing storage network and reserve capacity. 

Existing Demand Base 

LPG remains one of the most widely used cooking fuels in India. The fuel is supplied to households, commercial establishments, and several industrial users through a nationwide distribution system. 

Given the scale of consumption, storage capacity plays a role in maintaining continuity of supplies when international markets face uncertainty or transport networks experience disruptions. 

Read More: Petrol Crosses ₹100 In Delhi, ₹110 In Mumbai As Fuel Prices Rise 4 Times in 2 Weeks! 

Conclusion 

The government has asked state-run oil marketing companies to prepare plans for LPG reserves covering 30 days of demand while separately pursuing an expansion of crude oil storage capacity.  

The proposals are currently under evaluation, with details of the additional infrastructure yet to be announced. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.