The ongoing conflict in Iran has hit its third week, triggering a shortage of cooking gas across India. The central government has continued to reassure the public that domestic reserves of crude and refined fuel are sufficient to handle current demand.
India occupies a vulnerable position as the world’s third-largest oil consumer. Its dependence on West Asian neighbours like Qatar and Saudi Arabia is significant: over 40% of its crude imports and 90% of of its LPG imports are sourced from conflict-hit Middle East.
The closure of the Strait of Hormuz has forced India to pivot. To fill the gap, the country has increased its intake from West Africa and Russia. However, these "alternative" routes come with a financial sting — higher freight and insurance charges.
To manage the scarcity, the government has implemented a tiered distribution strategy — prioritising supplies to domestic household kitchens, while cutting supply to commercial establishments, such as hotels, to a fifth of their requirement.
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Change in LPG prices: The government has hiked the cost of both domestic and commercial LPG cylinders amid supply disruptions. The price of a 14.2 kg domestic cooking gas cylinder rose by ₹60, while the price of a 19 kg commercial cylinder increased by ₹144 in early March across major cities.
No revisions have been made since.
Price of domestic and commercial LPG in key Indian cities — full list Below is the list of prices for domestic and commercial LPG cylinders across major Indian cities.
City Domestic LPG cylinder price Commercial LPG cylinder price 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 the states are because of the local Value Added Tax (VAT) and freight charges.
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LPG cylinder prices remain unchanged for low-income households Despite the hike in commercial and domestic LPG cylinders, the prices have remained unchanged for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY), according to a PTI report.
The scheme covers over 10 crore gas connections provided to low-income households across the country.
India secures safe passage for LPG ships India is actively engaging with global partners to safeguard its energy security as tensions in West Asia continue to disrupt trade and logistics.
Ministry of External Affairs spokesperson Randhir Jaiswal said the ongoing situation has posed challenges for countries across the world, and the diplomatic engagement has helped ensure a safe passage for two Indian LPG vessels through the strategically important Strait of Hormuz.
"A couple of days back, you saw that because of our engagement, we were able to get two of our LPG ships through the Strait of Hormuz," he said.
India is continuing to coordinate with stakeholders to ensure uninterrupted energy supplies and the safety of its citizens in the Gulf region, he added.
"We continue to be in touch with several stakeholders in this matter so that we can ensure our energy security needs and also at the same time ensure the well-being and safety of our Indian nationals and diaspora who are present in large numbers in the GCC countries," Jaiswal said.
Govt announces ₹ 497 crore export relief package In view of the disruptive situations, the Central government has announced a financial relief package of ₹497 crores aimed at helping exporters affected by disruptions in West Asia.