Centre directs fuel companies to build 30-day LPG strategic reserves amid Hormuz disruption
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains·
Why in news
The Petroleum Ministry directed OMCs to build 30-day LPG strategic reserves due to supply disruptions caused by the West Asia conflict and the near-closure of the Strait of Hormuz.
Background
India relies on imports for approximately 60% of its LPG consumption. The Strait of Hormuz is a primary route for these imports. The government has implemented demand management measures to prioritize household needs.
Facts for Prelims
- FactIndia imports approximately 60% of its LPG consumption.
- PlaceStrait of Hormuz: A crucial maritime route for India's LPG imports.
- FactThe Petroleum Ministry directed OMCs to maintain a 30-day strategic reserve of LPG.
For Mains
Q. Discuss the strategic importance of securing energy supply chains and the role of strategic reserves in ensuring energy security amidst geopolitical disruptions.
Dimensions to cover in your answer
- Supply chain vulnerability: High dependence on the Strait of Hormuz for 60% of LPG imports
- Policy intervention: Balancing commercial stock management with emergency household demand prioritization
Keywords: Energy Security · Strategic Reserves · Supply Chain Resilience · Geopolitical Risk · Demand Management
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