As the Iran war enters its third week, Indians have reported shortages of cooking gas amid a supply shock caused by the conflict. The Center has so far maintained that the country has sufficient reserves of crude oil and refined fuel to meet local fuel demand.
India, the world’s third largest oil importer and consumer, sources more than 40% of its oil imports and 90% of its LPG imports from West Asian countries, including Saudi Arabia and Qatar.
By blocking the Strait of Hormuz, India has managed to partially offset its oil supply through alternative sources such as Russia and West Africa. However, sourcing from outside the Middle East is more expensive due to higher shipping and insurance fees.
The Government of India prioritizes supply to domestic kitchens. Supplies to commercial establishments such as hotels were initially interrupted, but later provided a fifth of their requirement.
The government has hiked the cost of both domestic and commercial LPG cylinders amid supply disruptions. The price of a 14.2 kg gas cylinder for home cooking has increased ₹60, while the price of 19 kg commercial cylinder increased by ₹144 in early March in major cities.
No revisions have been made since then.
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LPG prices for the city
The following retail rates are currently active in major cities across India:
City LPG Domestic Price LPG Commercial Price New Delhi ₹913 ₹1,884.50 Bombay ₹912.50 ₹1 836 Calcutta ₹939 ₹1,988.50 chennai ₹928.50 ₹2,043.50 Hyderabad ₹965 ₹2,105.50 Lucknow ₹950.50 ₹2007 Bengaluru ₹915.50 ₹1 958 Patna ₹1,002.50 ₹2,133.50
Differences in LPG prices across states are due to local value added tax (VAT) and transport charges.
LPG cylinder prices remain unchanged for low-income households
Despite the increase in commercial and domestic LPG cylinders, prices for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries have remained unchanged, according to a PTI report.
The scheme covers more than 10 million gas connections provided to low-income households across the country.
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India prioritizes domestic fuel demand
India said it would prioritize meeting domestic fuel demand before considering requests from several neighboring countries, including Bangladesh, seeking additional supplies from India to offset shortages triggered by ongoing geopolitical tensions.
“Rashtrahit Sarvopari (Nation First),” said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas. “Domestic fuel demand must be met first. If there is a surplus after meeting all domestic demand, the relevant authority can decide on that.”
It said ensuring sufficient domestic availability remains the primary objective, with exports to be assessed only after domestic demand is fully met.
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The center promises 10% more LPG
The Center has promised to increase the supply of commercial LPG to states that will speed up the introduction of pipeline gas networks in a bid to reduce pressure on the availability of cooking fuel.
The government has offered to increase commercial LPG supply to 30 percent in states that will speed up the introduction of natural gas pipelines – a simpler alternative to LPG for domestic kitchens and commercial establishments.
“LPG users should switch to PNG wherever there is a city gas distribution network (CGD) nearby,” she said, adding that her ministry had written to states offering 10 percent more commercial LPG if they grant deemed permits to all old applications, and the same after 24 hours of a fresh application for pipeline laying, reduction in annual lease/lease fees and permission for digging and reclamation schemes.
