The price of LPG is revised on a monthly basis and is determined by the state-owned oil companies. After the outbreak of conflict in the Middle East, there was a significant increase in the price of liquefied petroleum gas (LPG). ₹60 due to the interruption of gas transportation and supplies.
The near-closure of the Strait of Hormuz, the waterway between the Persian Gulf and the Gulf of Oman, has caused global oil price volatility and an energy crisis. Let’s take a look at cooking gas prices in the city.
While petrol, diesel and LPG prices remain stable in urban India, uncertainty over future supplies is looming, triggering panic buying. Notably, the Strait of Hormuz serves as a conduit for 40% of India’s oil imports.
Following the prevailing geopolitical situation in West Asia, the center created seven groups empowered to comprehensively address new energy issues. To ensure preparedness, the government is set to formulate strategies for LPG and power supply and across other key sectors.
Petroleum, LNG, LPG and Energy is one of the seven empowered groups created by the authorities. Headed by Petroleum and Natural Gas Secretary Neeraj Mittal (Convenor), this group comprises senior officials from the Power, Coal and Mining Ministries along with heads of major PSUs such as ONGC, IOC and GAIL.
India’s LPG imports are likely to be halved this month
According to a Reuters report, India’s LPG imports are likely to be halved this month. Traders and ship tracking data from LSEG indicate this worrying trend. About 60% of India’s LPG requirement comes from Gulf countries such as Saudi Arabia and the United Arab Emirates, which provide 85-90% of this energy supply. However, the imminent closure of the Strait of Hormuz, which is the primary transit route for transporting oil and gas to users, has caused a significant supply shortage, effectively reducing imports since the first week of March.
The data suggests that India will see a 46% drop in LPG imports on a daily basis since February as it is set to import 1.190 million metric tonnes of LPG this month following the US-Israeli war against Iran. To address the energy crisis and diversify its fuel supply, India issued an order on Tuesday to build and expand natural gas infrastructure.
The Ministry of Petroleum and Natural Gas said in its order that restrictions on liquefied petroleum gas (LPG) and natural gas supplies are expected to continue for a “long time” due to damage and outages at liquefaction facilities in the Persian Gulf supplying India, as well as the ongoing blockade of the Strait of Hormuz.
