The ongoing conflict in West Asia between the US, Israel and Iran has sparked panic for domestic LPG cylinders in several parts of India, with people seen queuing up outside gas agencies.
In light of the rise in global energy prices linked to the crisis, cooking gas prices have risen $60 per cylinder on Saturday. In view of hoarding and frequent bookings of household LPG cylinders, a 25-day ban period has also been imposed.
LPG prices are still cheaper than other countries
The cost of non-subsidized LPG, which is typically used in home kitchens, will now rise $913 per cylinder 14.2 kg in delhi vs $853 previously.
High-level government sources said the increase was necessary due to rising global energy prices. Despite this increase, prices are still lower than in most countries of the world, according to officials whose names were not mentioned by news agencies.
Saturday’s LPG price hike was the second rate increase in 11 months. The price was last raised by $50 in April last year, news agency PTI reported.
Also Read: LPG cylinder price rises in India amid conflict in Middle East: Check latest prices in Delhi, Mumbai and Kolkata
A 25-day holding period between gas holds
Amid LPG fears, and to stop hoarding and black marketing, the LPG reservation period gap has been increased from 21 to 25 days, ANI reported, citing government sources.
The report said that people who were earlier booking LPG cylinders within 55 days, started booking LPG cylinders within 15 days.
She also said the government had ordered refineries to increase LPG production and asked them to prioritize domestic LPG over commercial connections.
People form lines outside the gas agency
Videos have also gone viral showing people standing in long queues carrying LPG cylinders.
A video from Bairdpur in Uttar Pradesh showed hundreds of people sitting on their empty LPG cylinders queuing outside the gas agency. HT.com was unable to independently verify the authenticity of this video.
People were reportedly seen standing outside the Bharat Gas agency in Noida, with one person telling India Today that he had booked LPG five days ago and is yet to get it.
At the same time, the Press Information Office urged citizens not to panic and rush after fake news.
She said there is no need to panic about India’s energy security, noting that the country has more than 250 million barrels of crude oil and fuel stocks, providing a supply buffer of 7 to 8 weeks across reserves and supply systems.
She also noted on March 6 that India’s refining capacity exceeds domestic consumption, stressing that there has been no shortage of gasoline stations over the past 12 years.
Read also: Restaurants complain about the shortage of commercial gas cylinders
Pune temporarily shuts gas incinerator
The Pune Municipal Corporation (PMC) on Sunday temporarily shut down gas burners in the city after imposing restrictions on the use of LPG components such as propane and butane, PTI reported, citing officials.
The Ministry of Petroleum and Natural Gas issued an order on March 5 stating that available propane and butane will be given priority for domestic LPG supply, the civic body said.
Read also: Rising LPG prices raise concerns; Congress slams ‘inflation man’, Mamata calls for protest, BJP says it’s nominal
In view of the resulting gas shortage, PMC has decided to keep gas burners shut from March 5 until further notice, a civic official said.
The conflict that began with US-Israeli strikes on Iran and counter-strikes launched by Tehran on US military bases led to an almost complete halt in the movement of tankers through the Strait of Hormuz. The Strait of Hormuz is a narrow passage used by Middle Eastern producers to export oil and gas to global markets. This disruption has sharply reduced energy shipments from the region, causing global oil and gas prices to rise.
