India's LPG Prices Surge Amid US-Israel War with Iran

Global LPG prices have increased significantly due to the ongoing US-Israel war with Iran, disrupting energy supplies from the Middle East. This disruption has had a profound impact on India, where oil companies have raised LPG prices.

Key Developments:

• Domestic LPG prices have increased by Rs 60 per unit, with a 14.2-kg cylinder now costing Rs 913 in Delhi.
• Commercial LPG prices have risen by Rs 114.5, affecting the hospitality sector in states such as Maharashtra and Karnataka, which are facing a severe shortage of commercial LPG cylinders.

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Government Intervention:

• The Union government has invoked the Essential Commodities Act to ensure an uninterrupted supply of domestic cooking gas.
• Under the order, refineries and petrochemical units are directed to maximize LPG production and divert key hydrocarbon streams to the LPG pool.
• The supply of natural gas to several sectors, including domestic piped natural gas (PNG), compressed natural gas (CNG) for transport, and LPG production, will be treated as a priority allocation and maintained at 100% of their average consumption over the past six months, subject to operational availability.
• Natural gas supply to fertiliser plants will be maintained at 70% of their average consumption over the past six months, depending on operational availability.
• Gas marketing entities have been directed to maintain supplies to tea industries, manufacturing units, and other industrial consumers connected to the national gas grid at 80% of their past six-month average consumption.