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News Brief | January 2017

Sell domestic LPG only to PSU oil firms | Govt

The government has ordered LPG producers like Reliance Industries to supply all LPG they produce locally to state-owned oil companies only, and private retailers have been asked to source their requirements through imports. The Ministry of Petroleum and Natural Gas, in an order issued this month, stated that ┬┤sale of indigenously produced LPG is not permitted to the entities other than government oil companies.┬┤ While India is surplus in refining capacity, it does not produce enough LPG to meet all of its demand. It imported 8.7 million tonnes of LPG in 2015-16 and 4.66 million tonnes in first half of current fiscal. LPG is produced by both public sector firms like Indian Oil Corp Ltd (IOC) as well as private firms like Reliance Industries Ltd. There are a total of 183 parallel LPG marketers in the country.
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