As tensions in the Middle East continue, uncertainty looms over domestic liquefied petroleum gas (LPG) supplies. The recent price hike has further fueled panic and fear among consumers anticipating future shortages. Indian Oil Corporation issued an advisory on Tuesday urging customers to book LPG cylinders only when necessary to curb hoarding, avoid panic bookings and black marketing.
In a statement on the X website, the state-run gas company assured customers of safe and uninterrupted supplies, saying, “IndianOil continues to ensure constant availability of LPG to households across the country. We understand that some customers may book refills earlier than usual. However, advance or panic bookings may temporarily increase demand and affect delivery times.”
It added: “Please book LPG refills only when required and avoid panic bookings.”
How is the conflict in the Middle East affecting India?
Strategically located along Iran’s southern coast, the Strait of Hormuz is a key route that supplies almost a fifth of the world’s oil reserves. Disruption to the movement of vessels and oil tankers due to the ongoing conflict between Iran and the US and Israel has caused high volatility in oil prices. This supply shortage has spread across asset classes, including LPG rates, and sent Brent crude, the global benchmark, to new highs.
According to the Press Information Bureau (PIB), LPG bookings saw a sharp decline on March 14 with around 77 thousand bookings compared to 88.8 thousand bookings registered on March 13. Moreover, online bookings of LPG cylinders have increased significantly from 84% to around 87%.
Amid cooking gas shortages and supply constraints in the country caused by the conflict in West Asia, the Indian-flagged tanker Shivalik and Nanda Devi arrived at Mundra port in Gujarat after transiting the Strait of Hormuz. These vessels imported about 92,712 MT of LPG.
The Indian Navy has deployed two task forces of warships to assist in the safe transit of merchant vessels and tankers carrying gas and oil, as per an ANI report. The Indian government says Oil Marketing Companies has not seen any cases of fuel drying up at retail outlets as it has ordered refineries to maximize LPG production and regulate domestic distribution through a first-in, first-out principle.
LPG price today (March 17)
Check ₹60 LPG cylinder prices across the city ₹60 increase as rates vary from state to state due to local value added tax (VAT) and shipping charges.
