LPG scarcity: Govt asks cos to import more

By agencies   |   Friday, 07 October 2005, 19:30 IST
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NEW DELHI: The government has asked oil companies to source additional cargoes of cooking gas to tide over LPG shortage. Oil company officials said they want to import an additional 0.2 mmt (million metric tons) of LPG immediately. It is being estimated that oil companies may end up forking out a premium of almost $15 per ton to obtain the additional quantities. However, companies have been directed to source the additional cooking gas on an urgent basis. Petroleum minister Mani Shankar Aiyar said, “The three OMCs — IOC, BPCL and HPCL — will ensure that normal supply of LPG is restored country-wide by Monday, October 10. It will be done through proper import management and inventory management.” The LPG crisis runs the risk of snowballing into a major political issue, given that state elections are around the corner. The ministry has decided to set up an emergency task force under the leadership of IOC to source and import LPG. “Oil diplomacy will assist us in this regard,” Aiyar said. He added that he has established personal rapport with his counterparts in various oil exporting countries, which will come handy in resolving this crisis.