The ongoing conflict in the Middle East and the effective suspension of trade via the crucial Strait of Hormuz has led to supply disruptions for LPG in India, with New Delhi relying mostly on imports to meet its domestic needs.
India relies on imports to meet around 60% of its domestic LPG needs, and crucially, 90% of these imports come via the Middle East, through the Strait of Hormuz.
However, since the US and Israel carried out joint strikes against Iran on 28 February, sparking conflict throughout the Middle East, maritime traffic has effectively grinded to a halt in the Strait of Hormuz, with tankers avoiding transits amid threats of attacks.
With trade suspended, prices of domestic and commercial LPG cylinders have been hiked in India, though the Central government has repeatedly assured citizens of sufficient reserves and stable supply.
Change in LPG prices To manage the scarcity, cooking gas has also been brought under the ambit of the Essential Commodities Act, 1955, and the government has implemented a tiered distribution strategy, prioritizing supplies to households and cutting supplies to commercial establishments to one fifth of their requirements.
LPG prices in India were last hiked in early march amid supply disruptions. The price of a 14.2 kg domestic LPG cylinder was increased by ₹50, while the price of a 19 kg commercial cylinder was hiked by ₹144.
No revisions have been made since.
Price of domestic and commercial LPG in major Indian cities — full list Below is the list of prices for domestic and commercial LPG cylinders across major Indian cities.
City Domestic rate Commercial rate New Delhi ₹ 913 ₹ 1,884.50 Mumbai ₹ 912.50 ₹ 1,836 Kolkata ₹ 939 ₹ 1,988.50 Chennai ₹ 928.50 ₹ 2,043.50 Hyderabad ₹ 965 ₹ 2,105.50 Lucknow ₹ 950.50 ₹ 2,007 Bengaluru ₹ 915.50 ₹ 1,958 Patna ₹ 1,002.50 ₹ 2,133.50
The differences in LPG prices across cities in different states are because of the local Value Added Tax (VAT) and freight charges.
LPG prices unchanged for low-income households Despite the hike in commercial and domestic LPG cylinders, prices have remained unchanged for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY), according to news agency PTI.
The scheme covers over 10 crore gas connections provided to low-income households across the country.
Gas allocations increased to 50% of pre-crisis levels The Union Ministry of Petroleum and Natural Gas announced on Saturday that the Centre was increasing gas allocations to states to 50% of pre-crisis levels, with an additional 20% supply to be implemented from Monday, 23 March.
In an official letter to all state and Union Territory (UT) Chief Secretaries, Petroleum Secretary Neeraj Mittal stated that the enhanced allocation aimed to support key sectors, particularly those linked to food supply and public welfare, news agency ANI reported.