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The Indian government has distributed 30,000 5-kg Free Trade LPG (FTL) cylinders to migrant workers. This initiative is part of a broader strategy to protect vulnerable groups during the West Asia energy crisis.
The Strait of Hormuz crisis has created ripples globally with crude prices skyrocketing to LPG supplies dwindling. From domestic to commercial, all supplies were hit and the government was looking to allocate five kg FTL cylinders for migrant labourers. In the latest inter-ministerial briefing, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said that “around 30,000 small 5‑kg cylinders were distributed to migrant workers”. On Monday (Mar 23), the Government of India had urged the states to allocate five kg FTL cylinders for migrant labourers.
Sharma on Friday said the government has taken several important decisions at different levels to manage the situation effectively. This includes procuring sufficient crude inventory, with supplies lined up for the next two months.
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As of date, nearly 30,000 tonnes of commercial LPG have been supplied since 14 March. Sharma said, “In making these decisions, the government ensured priority for restaurants, roadside eateries, hotels, industrial canteens, and migrant labour." The supply to restaurants have been increased from 50% to 70%, the ministry announced.
Assuring that the situation is comfortable with respect to LPG and PNG as well. “Our refineries are operating at full or even above capacity, and domestic LPG production has increased by almost 40%. Since India has a high import dependency, about 90% of LPG imports came through the Strait of Hormuz, the government decided to prioritise domestic consumers over commercial supply,” Sharma added.
Days after the war broke out in West Asia, the government assured that domestic supplies would be prioritised. Despite this, there were reports of LPG shortages, which fanned the black market.