LPG price is revised on a monthly basis and is determined by the state-run oil companies. Following the onset of Middle East conflict, the price of Liquefied Petroleum Gas (LPG) witnessed significant increase of ₹60 due to disruption in shipping and gas supplies.
The near-closure of the Strait of Hormuz, the waterway between the Persian Gulf and the Gulf of Oman serves, has caused global volatility in oil prices and energy crisis. Let's have a look at city-wise cooking gas rates.
City-wise LPG prices on 25 March
City LPG (14.2 kg) Delhi ₹ 913.00 Mumbai ₹ 948.50 Chennai ₹ 920.00 Kolkata ₹ 915.00 Bangalore ₹ 930.00 Hyderabad ₹ 965.00 Jaipur ₹ 916.50 Lucknow ₹ 950.50 Patna ₹ 1002.50
Even though the prices of petrol, diesel and LPG remain steady across Indian cities, but uncertainty over future supply looms which has triggered panic buying. Notably, the Strait of Hormuz serves as a conduit for 40% of India's crude oil imports.
In the wake of prevailing geopolitical situation in West Asia, the Centre has constituted seven empowered groups to comprehensively address emerging energy challenges. To ensure preparedness, the government is set to formulate strategies on LPG and energy supplies and across other key sectors.
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Petroleum, LNG, LPG and Energy is one among the seven empowered groups constituted by the authorities. Led by Secretary, Ministry of Petroleum & Natural Gas Neeraj Mittal (Convenor), this group comprises senior officials from power, coal, and mining ministries, along with heads of major PSUs such as ONGC, IOC, and GAIL.
LPG imports to India are likely to halve this month As per Reuters report, LPG imports to India are likely to halve this month. Traders and ship-tracking data from LSEG indicates this worrisome trend. Around 60% of India's LPG needs are sourced from Gulf countries like Saudi Arabia and the UAE which provide 85-90% of this energy supply. However, the near-closure of the Strait of Hormuz, which is an essential transit route for shipping oil and gas to users, has created significant supply shortage, effectively reducing imports since the first week of March.
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Data suggests that India will see 46% drop in LPG import from February on a daily basis as it is set to import 1.190 million metric tons of LPG this month following the US-Israeli war on Iran. To address the energy crisis and diversify its fuel supply, India issued an order on Tuesday aimed to build and expand natural gas infrastructure.