HPCL imports LPG in emergency for nonstop supply

Severe shortage of water in Karnataka is affecting LPG production in industries like HPCL.

The Dollar Business Bureau

Hindustan Petroleum Corporation Ltd (HPCL) has started the emergency import of liquefied petroleum gas (LPG) for uninterrupted supply to Karnataka state consumers. The LPG production of Mangalore Refinery and Petrochemicals Ltd (MRPL) has come down from 2,500 tonnes per day to 800 tonnes per day due to water crisis in the city of Mangalore.

HPCL’s Mangalore LPG Import Facility (MLIF) used to supply over 5,000 tonnes of LPG from its network along with Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL). As Nethravati, the main river of Dakshina Kannada, has completely dried up, there is severe shortage of water in the state affecting the production of industries like HPCL.

According to the officials of HPCL, however this would not cause problem in supplying LPG to the consumers. The company has started importing an extra 1,800 tonnes of LPG in addition to the current import of 2,500 tonnes of LPG. The MRPL is currently supplying 800 tonnes of LPG. Moreover, IOCL and BPCL would also procure sometimes from ELF LPG import facility in Mangalore.

Speaking about the costs incurred for emergency import, the official said there was no major difference in the price except  for some incidental charges. As the facility is opting for emergency import of LPG, the company needs to pay a premium to some extent. There is no problem in importing LPG, as there are many vessels ready to deliver LPG. Ultimately, the company wants to supply uninterrupted LPG to its consumers.

Varadachari, Executive Director of IOCL – Karnataka assured the consumers that they are making necessary imports for continuous supply of LPG in the state. He is also the state-level coordinator for oil companies.

The Dollar Business Bureau - May 06, 2016 12:00 IST