Centre urges households, industry to shift from LPG to induction cookstoves, PNG, electric furnaces as oil tops $100

With global crude oil prices surging past $100 per barrel amid the West Asia crisis, the government has begun nudging households and industries to shift to alternative energy sources as it seeks to ease pressure on domestic fuel supplies and reduce dependence on imports.

Amid concerns over availability of LPG (liquefied petroleum gas), consumers have been encouraged to move to electric cookstoves and piped natural gas (PNG), while industries reliant on commercial LPG have been asked to move to PNG and electric furnaces.

“There is pressure on LPG and that’s why repeated requests have been made to consumers to shift to other available energy sources—PNG or electric cookstoves,” Sujata Sharma, joint secretary in the petroleum ministry, said at a media briefing on Monday.

She added that India has made adequate efforts over the past 45 days to tie up supplies for LPG, crude oil and LNG to meet the demand and keep things under control, and pointed to a diversified base of 40 countries for crude imports.

“For LNG also, we have quite a comfortable situation,” Sharma said. “For LPG, cargoes have been tied up and it is because of this we are able to maintain steady supply to the domestic LPG consumer.” Supply of commercial LPG has also been increased up to 70%, Sharma added.

The statement gains significance as oil prices surged over 7% following the breakdown of US-Iran peace talks and threats by the US to block the flow of tankers through the Strait of Hormuz, raising concerns over potential disruption to energy shipments, including cargoes headed to India.

The escalation has also unsettled financial markets, with benchmark indices declining on Monday after the breakdown in US-Iran talks. The Nifty 50 and Sensex ended about 0.9% lower, while volatility spiked, reflecting heightened uncertainty around the conflict and its impact on energy supplies.

On concerns over a potential supply squeeze following a US blockade, Randhir Jaiswal, spokesperson of the ministry of external affairs, said India expects that unimpeded freedom of navigation and global flow of commerce would prevail through the strait of Hormuz.

In a related development, a crude oil tanker—MT Jaya—carrying 277,321 tonnes of Iranian oil, reached Paradip Port on Odisha from Kharg Island, Iran, according to a tweet by Paradip Port Authority.

Addressing the mediapersons, Mukesh Mangal, additional secretary, ministry of ports, shipping and waterways said another energy-laden vessel has crossed the Strait of Hormuz, and is expected to reach India on 14 April.

On LPG supply constraints faced by industry, particularly auto component makers, Hanif Qureshi, additional secretary in the ministry of heavy industries, said the supply gap is not “severe” and the government is in constant touch with industry body Automotive Component Manufacturers Association of India (ACMA).

He added that the government has suggested industries dependent on commercial LPG for blast furnace operations to move to electric furnaces and commercial piped natural gas (PNG). The government, Petroleum and Natural Gas Regulatory Board, and city gas distribution players have already accelerated efforts to increase adoption of PNG.

To be sure, a shift to electric furnaces and cookstoves is expected to increase power demand, which could touch 271GW this summer, up from 242GW last fiscal.

Last week, the Bureau of Energy Efficiency (BEE) said the increased adoption of electric cooktops may add 13-27GW of power to the morning and evening peak demand in the country and the government is prepared to meet the anticipated higher demand.

Mint earlier reported that state-run EESL was planning to revamp its National Efficient Cooking Programme to increase offtake of electric cookstoves.

On recommendations by ethanol manufacturers to increase the share of ethanol in petrol, Qureshi said: “The government is committed to use biofuels as far as possible. E20, which means 20% blending, has already taken place. So, BIS has also said that +/-1% of blending can be there for 21%.”

He further said that flex fuel engines with the capacity to use higher ethanol-blended petrol, beyond the current 20%, would gain momentum going ahead.

“Industry has already come up with models which are compliant with flex fuel—E20 to E85,” Qureshi said, adding that the engines can take that blend without any degradation in performance. “We have seen development of four wheelers, as well as two wheelers which are capable of using flex fuels.”