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India imports approximately 60 per cent of its LPG needs, and out of these imports, about 90 per cent come through the Strait of Hormuz
A Bharat Petroleum Corporation worker transports LPG cylinders in Mumbai (AFP)The US blockade on vessels entering or leaving Iranian ports adds to uncertainty over shipping through the Strait of Hormuz, which has been all but shut since the start of the Iran war.
Ordinarily, roughly one-fifth of global oil and gas exports transit the Strait of Hormuz.
India imports approximately 60 per cent of its LPG needs, and "out of these imports, about 90 per cent come through the Strait of Hormuz, which has been impacted due to current happenings," the government said earlier.
The government has since prioritised LPG supply to domestic households at the cost of cuts in supplies to commercial users like hotels and restaurants.
Commercial cylinder prices rise twice
Domestic LPG prices have been revised once, whereas commercial cooking gas rates were revised twice in the last two months, hitting restaurants, eateries, and other businesses harder.
Notably, the price of a 14.2 kg domestic LPG cylinder was raised by ₹60 in March. But no revisions in rates have been made after that, keeping domestic LPG prices steady throughout the country.
Meanwhile, the price of a 19 kg commercial LPG cylinder was first increased by ₹144 in March, followed by another hike of nearly ₹200 on 1 April.
Check city-wise LPG rates on April 15
| New Delhi | ₹913 | ₹2078.50 |
| Kolkata | ₹939 | ₹2208.50 |
| Mumbai | ₹912 | ₹2031.00 |
| Chennai | ₹928 | ₹2246.50 |
| Bengaluru | ₹915 | ₹2161.00 |
| Hyderabad | ₹965 | ₹2320.50 |
| Jaipur | ₹916 | ₹2106.00 |
| Patna | ₹1002.50 | ₹2353.50 |
Is there a shortage of LPG and petrol?
The government has dismissed all claims of LPG and petrol shortage as "rumours".
However, several restaurants and shops were forced to cut their menus short, with many companies reportedly informing employees that they would limit their cafeteria menus. A few also advised them to work from home and "bring their own food".
In a press release on March 26, the Ministry of Petroleum & Natural Gas said the supply of LPG is affected due to the prevailing geopolitical situation, but there's "no reported dry-out at LPG distributorships" and that “delivery of Domestic LPG Cylinders is normal.”
In a recent statement, the government said domestic LPG supplies remain stable overall, with no reported stockouts and over 52 lakh cylinders delivered on April 11.
Why is LPG, and not PNG, facing a crisis?
Oil Minister Hardeep Singh Puri had said in Parliament earlier this month, “India was previously importing approximately 60 per cent of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait and 40 per cent is produced domestically.”
Meanwhile, for PNG, domestic natural gas and imported LNG roughly form about 50:50 share in total consumption. The source for PNG in India is domestic natural gas fields and imported LNG (converted back to gas).
According to data from the Ministry of Petroleum & Natural Gas, India produced about 18,646 MMSCM of natural gas domestically and imported about 19,031 MMSCM of LNG during the period April-October, 2019.
"This gas also caters to demand of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG)," the government has said in a press release.
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