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By Nidhi Verma
NEW DELHI, March 11 (Reuters) - India on Wednesday asked consumers not to panic about gas supplies and conserve energy wherever possible, as the world’s second-largest importer of liquefied petroleum gas (LPG) struggles to meet domestic demand. The federal government has invoked emergency powers ordering refiners to maximise production of LPG and cut sales to industry to avoid a shortage for its some 333 million homes with LPG connection.
The government’s measures have increased local LPG output by 25%, said Sujata Sharma, a joint secretary in the federal oil ministry.
Despite the steps, restaurants, hotels, and industries across sectors are beginning to feel the strain from the tighter supplies of LPG, mainly used as cooking fuel.
“Panic booking (of LPG cylinders) and hoarding behaviour have been driven by misinformation,” Sharma said. India’s crude oil, LPG, and Liquefied natural gas (LNG) supplies have been disrupted due to global shipping constraints after the U.S. and Israel’s war with Iran halted traffic through the Gulf and the Strait of Hormuz.
India consumed 33.15 million metric tons of cooking gas last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East. India also imports about half of its 190 million standard cubic metres per day (mscmd) of gas consumption.
Sharma said LNG imports of 47.4 mmscmd have been hit due to supply constraints and force majeure by its top supplier Qatar. India has begun diverting gas supplies from non-priority sectors to key users.
India is securing crude and LNG from alternative sources with two LNG cargoes already on their way, Sharma said. Indian refiners have bought millions of barrels of Russian oil floating on the high seas after Washington granted a 30-day sanctions waiver.
Most Indian refineries are operating at full capacity, she said.
“The Middle East conflict has posed challenges for the world, but India’s fuel demand is being met. The Government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies and protect households and priority sectors,” she added.

India tells consumers not to panic over gas shortages and save energy