Nitin Khara, Chairman and Managing Director (CMD) of Confidence Petroleum India Limited (CPIL) stated that, oil marketing firms (OMCs) and businesses engaged in the supply of liquefied petroleum gas (LPG) are making ongoing efforts to keep distribution running smoothly throughout the nation in the face of geopolitical tensions caused by the Iran war.

Despite the obstacles that the changing global market has placed on the supply of LPG, Khara emphasized that the company’s top priority is still maintaining an unbroken supply for Indian consumers and retailers.

He stated that CPIL is monitoring the LPG supply situation on a daily basis.

“We evaluate every morning on how to guarantee the gas supply for that day. We do our best to provide timely delivery, but due to limited availability, certain challenges have arisen, as dealers from all over the nation call throughout the day,” he said.

He said that LPG importers are now experiencing a significant logistical challenge since two LPG ships are stranded close to sea ports and cannot enter or exit. The regular supply chain has been disrupted by this.

Khara told that the company usually imports about 40,000 metric tons of LPG each month, but this cycle has been disrupted by the current circumstances.

The original plan, according to Khara, was to unload 850 metric tons from the shipment, with the balance going to the Malaysian operations of the Norway-based energy corporation Equinor, as per a prior agreement.

The firm typically upholds its commitments, even if there is no formal sale and purchase agreement, he said.

However, some merchants insisted that the gas be delivered to Indian customers instead.

Khara stated, “In light of these requests, we are considering the possibility of using the available LPG in the nation to alleviate the burden on consumers at home. ”

He also mentioned that the state governments have recommended unloading the gas locally in order to increase the supply in the national market.

If the LPG is kept in India, it could help guarantee an extra 12 to 13 days of supply, which might alleviate some of the market’s concerns.

The manufacture and availability of LPG have been impacted by the current global conflict and disturbances, according to Khara.

Even if the situation returns to normal right away, it may take almost four months for the entire supply chain to stabilize because of refinery damage, low output, and a lack of LPG tankers.