LPG Cylinder Crisis: The ongoing conflict between Iran, Israel, and the US in the Middle East has now impacted Indian households. With the Strait of Hormuz, the primary route for oil and gas supply, nearly obstructed, India is experiencing a shortage of LPG (Liquefied Petroleum Gas) cylinders, escalating prices, and long lines. In light of the rising tensions in West Asia, the Indian Oil Corporation has released a notice for gas consumers. They have advised that bookings should only be made when gas is actually needed to prevent panic buying and black market activities.
The state-owned gas company, Indian Oil, announced on the social media platform X that they will continue to provide a steady supply of LPG to homes nationwide. “We recognize that some customers might be ordering refills sooner than usual. However, early or panic bookings can temporarily spike demand and affect delivery schedules,” they stated. “Please only order your LPG refill when necessary and refrain from panic buying,” they emphasized.
How has the conflict in the Middle East impacted India?
In reality, a significant portion of India’s gas supply is transported through the Strait of Hormuz. This maritime route runs through Iran and is a narrow passage at the entrance of the Persian Gulf. It is the sole sea route linking the Persian Gulf to the Gulf of Oman or the Arabian Sea. Iran is situated to the north, while Oman and the United Arab Emirates are to the south. The Strait of Hormuz is often referred to as the gateway to the Persian Gulf, as major oil-producing nations like Saudi Arabia, Kuwait, Qatar, and Iraq export their oil via this narrow passage. Daily, around 15 million barrels of crude oil traverse this route, accounting for about one-fifth of the global supply.
Iran has restricted the passage of vessels through this route, leading to a gas crisis in India. Nevertheless, Iran has permitted two ships to pass through, both carrying LPG, which have now reached India. Approximately 92,712 metric tons of LPG were brought in via these vessels.
How much LPG booking was done?
According to the Press Information Bureau (PIB), LPG bookings saw a significant decline on March 14. Around 7.7 million bookings were made on this day, compared to 8.88 million on March 13. Furthermore, online LPG cylinder bookings also saw a significant increase, rising from 84% to nearly 87%.