India's Furnace Oil Consumption Jumps Amid West Asia Crisis

The consumption of furnace oil in India increased by 29.8% in July compared to the same month last year, according to data released by the Petroleum Planning and Analysis Cell (PPAC). This growth is attributed to the industry switching from natural gas to furnace oil following a crisis in West Asia that disrupted LNG shipments through the Strait of Hormuz.

The Ministry of Petroleum and Natural Gas had invoked Section 3 of the Essential Commodities Act, 1955, on March 10, setting a priority hierarchy for gas allocation. The first tier included domestic PNG, CNG for transport, LPG production, and essential pipeline operations at full allocation.

Two pollution regulators, the Commission for Air Quality Management (CAQM) and the Gujarat Pollution Control Board, allowed industries to use alternative fuels such as high-speed diesel, biomass, and refuse-derived fuel pellets in place of natural gas. This relaxation was originally valid for one month but remains in force due to the ongoing global energy supply situation.