Middle East tensions: Amid the Middle East tensions, the Ministry of Petroleum and Natural Gas stated on Saturday that, under a revised supply order, it has barred consumers with Piped Natural Gas (PNG) connections from holding, obtaining, or refilling domestic LPG cylinders.
In a statement, the Ministry said that under this amendment, state-run oil companies have been barred from providing LPG connections or refills to customers who already possess PNG connections.
India, the world’s second-largest LPG consumer, relies on imports to meet approximately 90 per cent of its requirements. According to data from Kpler, shipments for the week beginning March 9 are estimated at 270,000 tons — the lowest level since April 2023. Inflows from the Middle East have come to a near-complete halt following attacks on Iran by the US and Israel, as these strikes have resulted in the closure of a critical transit route: the Strait of Hormuz.
Recently, Oil Minister Hardeep Puri informed Parliament that the government is seeking to procure additional cargoes from the US, Norway, Canada, Algeria, and Russia, and is in talks with Iran to ensure safe passage for vessels bound for India. He stated that refiners have been directed to ramp up production, resulting in a 28 per cent increase in domestic LPG output. Retail prices were also raised — for the first time in a year — in an effort to keep demand in check.
