The Center on Wednesday urged consumers not to panic in booking LPG cylinders amid fears of shortages during the ongoing supply disruptions linked to the US-Israel war.
In a press conference, the government assured that sufficient LPG stocks were available and asked people to avoid unnecessary reservations.
A government official also said that the country currently has access to about 55,000 barrels of crude oil per day, adding that the quantities secured today exceed what would normally have arrived through the Strait of Hormuz during this period.
Supply is stable despite the US-Iran war
Officials stressed that the government and oil companies have taken steps to diversify sources of supply and ensure that energy imports continue without interruption.
Read also Indian crude oil supplies are safe: amid fears of shortages due to the closure of the Strait of Hormuz
“India’s supply of crude oil remains secure,” a senior government official said, adding that the procurement arrangements currently in place provide sufficient quantities to meet demand in the country.
This reassurance comes at a time of increasing fears of supply disruption due to the escalating conflict in West Asia and security concerns around key maritime routes.
LPG prices rise in India
The pressure on the supply chain is beginning to be reflected in local prices. On March 7, LPG prices were raised by $60 across cities. In Delhi, a domestic cylinder now costs 14.2 kg $913, while the cost of a 19 kg commercial cylinder is approx $1.883 after rising more than 110?
Read also 90% of India’s LPG imports pass through the Strait of Hormuz, but things are under control: government
Authorities have prioritized domestic gas supply to homes, forcing restaurants in cities like Bengaluru, Mumbai and Gurugram to make changes to their menus, reduce gas use and explore alternative cooking methods. Many restaurants have switched to using tandoors, electric stoves, or coal-based electric ovens.
The shortage has also pushed some companies toward the black market, where the cylinders are said to be sold $2,800- $3000 which is much higher than the official price.
