The U.S. blockade of vessels entering or leaving Iranian ports adds to uncertainty about shipping through the Strait of Hormuz, which has been nearly closed since the start of the Iran war.
Roughly one fifth of global oil and gas exports normally pass through the Strait of Hormuz.
India imports about 60 percent of its LPG needs and “of these imports, about 90 percent comes through the Strait of Hormuz, which has been affected by current events,” the government said earlier.
Since then, the government has prioritized LPG supply to domestic households at the cost of restricting supply to commercial users such as hotels and restaurants.
Read also | India is following a price stabilization fund for petrol, diesel, LPG
Commercial cylinder prices are increasing twice
Domestic LPG prices have been revised once while commercial cooking gas rates have been revised twice in the last two months, hitting restaurants, eateries and other businesses harder.
The price of a 14.2 kg domestic LPG cylinder has increased significantly ₹60 in March. However, no rate revisions were made thereafter, so domestic LPG prices remained stable across the country.
Meanwhile, the price of a 19 kg commercial LPG cylinder was first increased ₹144 in March, followed by another hike of almost ₹200 on 1st April.
Check LPG prices for the city on April 15
CityDomestic (14.2 kg) Commercial (19 kg) New Delhi ₹913 ₹2078.50 Calcutta ₹939 ₹2208.50 Mumbai ₹912 ₹2031:00 Chennai ₹928 ₹2246.50 Bengaluru ₹915 ₹2161.00 Hyderabad ₹965 ₹2320.50 Jaipur ₹916 ₹2106.00 Patna ₹1002.50 ₹2353.50Read also | PNG vs LPG: Which is more affordable, offers uninterrupted supply? Answers to frequently asked questions
Is there a shortage of LPG and petrol?
The government has dismissed all claims of shortage of LPG and petrol as “rumours”.
However, several restaurants and shops have been forced to cut their menus, with many companies reportedly informing staff that they will be cutting back on their menus. Some also advised them to work from home and “bring their own food”.
In a March 26 press release, the Ministry of Petroleum and Natural Gas said that LPG supplies are affected by the prevailing geopolitical situation, but “no drying up is reported at LPG distributors” and that “domestic LPG cylinder supplies are normal”.
In a recent statement, the government said that domestic LPG supplies remain stable overall, with no stockpiles reported and more than 52,000 cylinders delivered on April 11.
Read also | Why is LPG, and not PNG, facing a crisis due to the US-Iran war? Know the key difference
Why is LPG, and not PNG, facing a crisis?
Petroleum Minister Hardeep Singh Puri said in Parliament earlier this month, “India used to import around 60 per cent of its LPG requirements from Gulf countries like Qatar, UAE, Saudi Arabia and Kuwait and 40 per cent is produced domestically.
Meanwhile, for PNG, domestic natural gas and imported LNG account for a roughly 50:50 share of total consumption. PNG in India is sourced from domestic natural gas fields and imported LNG (converted back to gas).
India produced about 18,646 MMSCM of natural gas domestically and imported about 19,031 MMSCM of LNG during April-October 2019, according to data from the Ministry of Petroleum and Natural Gas.
“This gas also meets the demand for Piped Natural Gas (PNG) and Compressed Natural Gas (CNG),” the government said in a press release.
