LPG Cylinder Prices Remain Steady Amid Supply Concerns, PM Modi Assures Fuel Availability

India LPG Supply Alert: Centre Takes Precautions Amid Middle East Conflict

The Indian government has issued directives to states and Union territories to monitor LPG availability on a daily basis and take action against violators of supply rules. The directives come in response to speculation that the ongoing conflict in the Middle East could disrupt LPG cylinder supplies. To mitigate the situation, the Ministry of Home Affairs has established a 24/7 control room staffed by nodal officers from the ministries of information and broadcasting, as well as petroleum and natural gas.

LPG Consumption and Import Trends

India's annual LPG consumption stands at approximately 31.3 million tonnes. The domestic segment, comprising household kitchens, accounts for around 87% of this demand, while commercial users such as hotels and restaurants account for the remaining share. Notably, about 62% of the country's total LPG requirement is met through imports.

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Impact of Middle East Conflict on LPG Imports

The ongoing conflict involving the United States and Israel targeting Iran, followed by Tehran's retaliation, has resulted in the closure of the Strait of Hormuz. This vital shipping corridor handles nearly 85-90% of India's LPG imports from West Asian suppliers, including Saudi Arabia and Qatar. The closure of the Strait of Hormuz has raised concerns about the potential disruption to LPG supplies in India.