LPG prices have risen as a domino effect of the West Asian conflict. Steady growth in oil prices across the world has seen the geopolitical situation in the Middle East affect supply. In the state capital — New Delhi — a 14.2 kg cylinder containing domestic liquefied petroleum gas (LPG) costs ₹913.00, as per the last valid prices on March 17. This price reflects a significant increase ₹60 per month compared to the previous price ₹853.00.
Differences in LPG prices between states arise due to local value added tax (VAT) and transport charges. Check LPG prices after recent ₹60 hikes in domestic LPG bottles.
LPG prices for the city
The following retail rates are currently active in major cities across India”
The Strait of Hormuz is a key route that provides almost 20% of the world’s oil reserves, strategically located along the southern coast of Iran. However, the disruption to vessel movement due to the ongoing conflict between Iran and the US and Israel has caused a LPG supply crisis, the impact of which is seen in prices. High volatility in oil prices rippled across asset classes and sent LPG rates soaring.
The Indian government says there is no shortage of cooking gas. However, the impact of the LPG crisis has been widely felt with several businesses in the hospitality industry having to temporarily suspend operations.
According to an ANI report, the Indian Navy has deployed two task forces of warships to help in the safe transit of merchant vessels and tankers bringing gas and oil to the country through the Strait of Hormuz. To allow safe passage of Indian-flagged ships, Iran has requested the exchange of three tankers seized by India.
The Stellar Ruby, Asphalt Star and Al Jafzia were the three tankers that were earlier seized by India on allegations that they were involved in illegal ship-to-ship transfers at sea. Asphalt Star and Al Jafzia were under the flag of Nicaragua and Mali, respectively, while Stellar Ruby is an Iranian-flagged vessel. According to the report, these tankers have changed their identity and movement.
The government has taken steps to ensure balance between demand and supply, PIB press releases said, as it introduced some measures to prevent hoarding and ensure compliance with the government directive. The Center directed refineries to maximize LPG production and regulate domestic distribution on a first-in, first-out basis. Special arrangements have been made for essential sectors such as hospitals, educational institutions, restaurants and dairies to ensure commercial supply of LPG cylinders through direct coordination with the Oil Marketing Company (OMC).
