LPG Gas: Big relief for people. The ongoing war in West Asia has affected the global supply of LPG. India is no exception. Most of India’s gas comes from Qatar, but this Gulf country has stopped the supply. This has created a gas crisis in the country. The restaurant industry is facing huge losses due to the unavailability of commercial gas cylinders. There is also a problem with domestic cylinders. Central Govt says, Cylinder will be available in two and a half days.
The government says two cargoes of LNG are headed to India. Sujata Sharma, Joint Secretary of the Ministry of Petroleum and Natural Gas, stated that cylinders will be delivered within two and a half days of booking. She urged people not to panic and stockpile cylinders. Sharma added that the normal delivery cycle for domestic LPG remains approximately two and a half days, so customers should not rush to book cylinders.
The government stated that our daily natural gas consumption is approximately 189 million mscmd. Of this, 97.5 mscmd is produced domestically and the remainder is imported. Of this, 47.4 mscmd of imports have been affected. To compensate, purchases are being made from alternative sources. Gas companies have purchased cargoes from new sources. Two LNG cargoes are arriving in the country.
The Petroleum Ministry stated that we import crude from 40 countries. Our state-owned companies purchase oil from various sources. Consequently, approximately 70% of our crude oil is coming from routes other than the Strait of Hormuz. Previously, this figure was 55%. Two cargoes have already departed for India and will arrive within a few days. Refineries are operating at full capacity, with some operating at over 100% capacity.
Several restaurants in the capital, Delhi, have closed due to the lack of gas supply. These include Boheme Cafe Bar in Karol Bagh, Amaltas – Indian Tapas and Bar in GK2 M Block Market, and Kashmir Chur Chur Naan in Paharganj. The ongoing war in West Asia and the resulting surge in oil prices could impact India’s economy. According to an analysis, a 10% increase in crude oil prices could lead to a 20-25 basis point decline in India’s GDP growth. India imports approximately 89% of its crude oil needs. Recently, crude oil prices reached close to $120 per barrel, its highest level in four years. The closure of shipping in the Strait of Hormuz has led to a 20% decline in global supply.