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India has ordered state-run oil firms to import 200,000 tonnes more of liquefied petroleum gas (LPG) immediately to cope with a cooking gas shortfall, the oil ministry said on Thursday.
The ministry issued the official order on Wednesday evening to state-run oil marketing companies Indian Oil Corp Ltd, Hindustan Petroleum Corp Ltd, Bharat Petroleum Corp Ltd and IBP Co Ltd.
"The oil marketing companies are advised to arrange import of additional 0.2 million tonnes of LPG immediately as the dislocation in distribution is disproportionately high indicating inept handling of the situation by the industry," the ministry said.
Indian Oil Corp, the country's largest refiner, said Indian oil firms had already contracted 14 cargoes, which would amount to 182,000 tonnes of LPG.
"We are trying to arrange for another 13 cargoes. The industry has stocks to meet seven days demand," IOC Chairman Sarthak Behuria told reporters.
Oil Minister Mani Shankar Aiyar said oil firms would draw stocks from their inventory to meet the shortfall as enough LPG was not available in the international market.
"They will build stocks again with imports," he said.
Industry officials told Reuters earlier this week that about 84 million households would be affected by the shortfall as LPG is the most commonly used cooking fuel in India. The ministry has told oil firms to keep a close watch on LPG distributors to ensure supplies are made to customers on time.

Copyright Reuters, 2005

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