An atypical lockdown due to the COVID-19 pandemic outbreak and as the call to stay at home may affect the country’s demand and supply of LPG and CNG.
As per appeal from Prime Minister Narender Modi due to COVID-19 are forced to stay at home for 21 days and today its 12th day of Lockdown in India. Quarantine cooking is the favorite time pass and relieves from stress to people.
LPG demands are increasing due to Lockdown as consumers are likely to cook different types of cousins and eat when they are with their family together. It is great to cook and experiment to try a different type of cooking products and lockdown is a good time to spend with family. Another side consumption of LPG (Liquefied Petroleum Gas) in commercial sectors is expected down due to Corona-virus.
The Indian Oil Corporation is the biggest oil refinery in India has cut capacity utilization at most of its refineries by 20% to 30%, which is the way to meet the rise in the demand. Fulfill the LPG gas is a big challenge for the Government.
Oil and Steel Minister Dharmendra Pardhan said that ” India had received assurance from Saudi Arabia that it would receive adequate LPG to fulfill the local needs”.
In 2019 India imported 14.538 million tones of LPG, which is 19.22% a million tones is up the year as the demand outpaces of production growth. And in consumption for 2019 were 26.94% million tones, which are 7.93% million tones up on the year.
In also addition, the productions of the same period increase at a slower pace of 0.28% to 12.77% million tones.
According to the analyst of Platts that LPG imports in India will rise 5% every year from 2020, while consumption of LPG from 2020 will increase by 3% every year.
While the other side prices of CNG (Compressed Natural Gas) used in automobile and cooking gas was cut 7% on Friday with the reduction in input natural gas prices.
According to the Indraprastha Gas Ltd. (IGL), the retailer of CNG and piped natural gas in the national capital and adjoining areas, the CNG price in Delhi will be cut by ₹ 3.20 to ₹ 42 per kg.
In Greater Noida and Ghaziabad, the reduction would be ₹ 3.60 to ₹ 47.75 per kg.
This is the 2nd reduction in rates in six months. On 2nd October 2019 in Delhi, the CNG price was cut by, ₹ 1.90 per kg and in Noida and Ghaziabad ₹ 2.15 per kg.
On that day piped natural gas rates were in Delhi cut by ₹ 0.90 per SCM (Standard Cubic Meter) and by ₹ 0.40 in neighboring towns in Uttar Pradesh.
A total of 276 CNG stations are being run during this period.
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