India presently has crude oil supplies tied up for the next 60 days with increased purchases from the west more than compensating for any disruption in supplies amid closure of Strait of Hormuz, the oil ministry said on March 26.

“Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Straits. High volumes available in international markets — especially from the western hemisphere — have more than compensated for any disruption,” the ministry said.

The government also noted that every refinery is running at over 100% utilisation with crude oil supplies for next 60 days having already been tied up by Indian oil companies. “There is no supply gap," the ministry said.

Further, dismissing reports of India having only 6 days of stocks, the ministry said that the country has 74 days of total reserve capacity and actual stock cover is around 60 days right now which includes crude stocks, products stocks and the dedicated strategic storage in caverns even after the 27th day of West Asia crisis.

The ministry noted that nearly two months of steady supply is available for every Indian citizen regardless of what happens globally.

“Next two months of crude procurement have also been secured. India is completely secure for the next many months and the quantity in strategic cavern storage becomes secondary in such a supply situation,” the ministry said.

800,000 MT of assured inbound LPG cargoes en route to India from US, Russia, Australia

Following the LPG Control Order issued by this Ministry, domestic refinery production has been ramped up by 40%, bringing daily LPG output to 50,000 metric tonnes which is more than 60% of the country’s requirement against a total daily requirement of around 80,000 metric tonnes.

Further, the net daily import requirement of the country has consequently come down to only 30,000 MT — meaning India is now producing much more than it needs to import, the government said.

Over and above domestic production, 800,000 MT of assured inbound LPG cargoes are already secured and en route from the United States, Russia, Australia, and other countries, arriving across India's 22 LPG import terminals — double the 11 terminals that existed in 2014.

The government highlighted that approximately one full month of supply is firmly arranged, with additional procurement being finalised continuously.

“Oil companies are successfully delivering over 50 lakh cylinders every day. Cylinder demand had gone up to 89 lakh cylinders due to panic ordering by consumers and has now come down to 50 lakh cylinders again. Commercial cylinder allocations have been raised to 50% in consultation with state governments to avoid hoarding or black marketing,” the ministry said.

Source: MoneyControl 

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