
LPG Prices Surge Amid Escalating India-Iran Tensions, Restaurants Feel Pinch
Global Energy Crisis Deepens Amid Ongoing Iran Conflict
The ongoing disruption in the Strait of Hormuz has exacerbated the global energy crisis, resulting in fuel rationing measures and work-from-home policies in several Asian countries. The strain is also being felt in India, where reports of LPG (Liquefied Petroleum Gas) shortages have emerged from multiple cities.
According to a recent report by the Times of India, the supply curbs are affecting not only commercial establishments that rely on LPG cylinders, but also key industries such as dal mills, steel units, and large packaged food manufacturers. Cooking gas is widely used in these sectors, and the disruption in supplies has left many businesses concerned about their operations in the coming days.
LPG Cylinder Prices in Major Cities
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| City | Price (per cylinder) |
|---|---|
| Delhi | Rs. 1,050 |
| Mumbai | Rs. 1,050 |
| Bengaluru | Rs. 1,050 |
| Chennai | Rs. 1,050 |
| Kolkata | Rs. 1,050 |
Industry sources have expressed concerns that the prolonged shortages could disrupt production across multiple sectors, including the steel sector, which uses LPG for firing furnaces, and dal mills, which depend on it for drying pulses. Companies such as Haldiram's Snacks Food Private Limited and Ajit Bakery have already begun to feel the impact, with some facing uncertain supply situations in the coming days.
Key Statistics
- 10,000: Number of civilian sites reportedly hit by US and Israel strikes in Iran
- 5 days: Duration for which Ajit Bakery has been assured of uninterrupted LPG supply
- Multiple sectors: Industries that could be affected by prolonged LPG shortages, including steel, dal mills, and packaged food manufacturers
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of potential disruptions in the energy sector due to global tensions.
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