Petroleum Minister Mani Shankar Aiyar on Thursday said the current LPG shortage in the country was likely to be over by Monday.
While the shortage in Delhi was precipitated owing to a strike at the Indian Oil Corporation's bottling plant and would be made up by operating the plant from October 9, shortfall in the remaining parts of the country would be met by drawing out from inventories and proper import management.
Briefing reporters after a meeting with senior executives of the IndianOil Corporation, Hindustan Petroleum and Bharat Petroleum, Aiyar said Hurricanes Katrina and Rita had also created high demand in the US, which was the biggest market for LPG, causing a global shortage. The companies were not able to physically access the required quantities.
He also said a 0.5 million tonne shortfall would be made up by drawing from inventories, which would be later made up by additional imports over the next few weeks.
The country had inventory of seven day LPG, the minister added.
IndianOil chairman and managing director S Behuria said demand was estimated to be 7.5 mt during the nine-month period of April-December. The domestic production of the country during the period would be 5.4 mt and the remaining 2.1 mt was planned to be imported. The companies would now import additional 1.8 mt through 14 cargoes.
Giving the reasons for the shortfall, Aiyar said a combination of factors contributed to the shortfall, which included the shutdown at the fluidised catalaytic convertor unit of the Reliance Industry Limited's Jamnagar refinery.
The company was experiencing problems in the FCC unit since last year and had planned to shut it down during April-May but later postponed it to July and then further to October 4, the minister added.
On the ministry's request to postpone the shutdown, the company conveyed that it was technically inescapable to do so and the refinery in its commercial interest would not close the unit at a time when the demand was high.
HPCL chairman and managing director MB Lal said the company would be increasing its inventory capacity by building shortage in Vishakhapatnam.
BPCL chairman Ashok Sinha said imports would be tied up by the month-end.
