LPG Supply Crisis: State-run oil companies are planning to supply only 10kg of LPG in a standard 14.2kg cylinder to consumers to extend the limited availability of stocks as domestic stocks decline and imports reduce in the wake of the ongoing war in Iran, according to a report by The Economic Times.
In the wake of ongoing Middle East conflicts, which have impacted LPG supplies in India, State-run oil companies are planning to supply only 10kg of LPG in a standard 14.2kg cylinder to consumers. The measure is intended to conserve LPG while ensuring supply reaches as many households as possible,” an industry executive said in an interview with The Economic Times.
Normally, a standard 14.2 kg cylinder has a life of 35-40 days in an average household, and we are talking of a refill of 10 kg, which means a household can be supplied for almost a month, said a report by
LPG Supply Tightens: 10 Kg cylinder plan may hit roadblocks
As part of this plan, which is yet to be rolled out, LPG cylinders will have to carry a new sticker that will indicate that they are filled to only 10 kg, with prices being adjusted proportionately.
This will require LPG bottling plants to adjust their scales accordingly. However, this plan may face some hurdles as any drastic move may lead to public protests and political backlash, especially as state elections are around the corner. However, company executives have said that the situation may worsen in the next month as well, according to a report by ET.
LPG Supply Crisis: Limited shipments raise concerns, conservation urged
Currently, no fresh shipments are on their way from the Gulf, and only two ships carrying a total cargo of 92,700 tonnes, or a day’s national consumption, have passed through the Strait of Hormuz last week. The partial restoration of LPG supplies to commercial users has put pressure on already depleted stocks.
“The LPG supply position is worrisome and needs to be conserved,” petroleum ministry joint secretary Sujata Sharma said repeatedly last week, even as the Centre assured that domestic supplies are regular. After initially stopping LPG supplies to commercial users, the Centre has now restored 40 per cent of their pre-war allocation, said a report by ET.
LPG consumption and imports under strain amid Gulf tensions
Households comprise 80,400 tonnes or 86 per cent of India’s daily LPG consumption of 93,500 tonnes. Total LPG consumption declined by 17 per cent during the first half of March. This indicates that the situation is affecting more than just commercial and industrial sectors. India depends on imports to meet 60 per cent of its LPG requirements.
Before the conflict began, the Gulf region provided 90 per cent of these imports. US President Donald Trump issued a statement that if the Strait of Hormuz does not open to maritime traffic, US power plants will be targeted by Iran. Currently, there are six Indian LPG tankers waiting at the Persian Gulf to cross the Strait of Hormuz, according to a report by ET.
