India should develop multiple supply chains: Congress MP on LPG shortage

New Delhi [India], March 10 : As the West Asia conflict disrupted Liquefied Petroleum Gas (LPG) and other natural gas supply across the country, Congress MP Karti Chidambaram on Tuesday stressed on the need for India to develop multiple supply chains so as to not be so adversely affected by the "natural fallout" of the crisis in the region.
"It is a natural fallout of the crisis in the Middle East. It is the unprovoked attack by the US on Iran which has provoked this. We should also develop other supply chains. This is not something one could have foreseen. Going forward, we must develop multiple supply chains so that we are not dependent on one geographical area," the Congress MP told ANI outside Parliament.
When asked on whether the US would help subdue the crisis, the Congress MP expressed uncertainty over President Donald Trump's actions, saying that there is "no counterbalance" to the United States in the world.
"Who can predict what Trump can do? There are no checks and balances in the US, and no counterbalance in the world. It is a very unpredictable situation," Chidambaram said.
However, Congress MP Jebi Mathur has squarely blamed the Central government for the shortage of supply, saying that such a problem should have been forseen due to the ongoing war.
"We should have foreseen that this problem will arise when a war is happening... Hoteliers of Chennai, Bengaluru and Pune have openly said that they do not have LPG, and they need to shut down their hotels. This is the case with the rest of the country, we are worried instead of having a plan," she told ANI.
Meanwhile, Congress MP Shashi Tharoor also highlighted how people are facing problems due to the war in Iran, which inadvertently has led to price hikes for consumers too.
"This is a very serious problem which is happening due to the conflict in Iran...There is a shortage of availability, and also the prices are being hiked," he told reporters.
The Union Government on Tuesday invoked the Essential Commodities Act (EC Act) to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six-month average gas consumption.
The order further states that supply of natural gas to the fertilizer plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six-month average gas consumption subject to operational availability.
The oil refining companies have been ordered to absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six-month gas consumption, subject to operational feasibility.