LPG Crisis in India : Despite the government’s repeated assurances regarding stock availability, India is witnessing a massive spike in “Panic Bookings” of LPG cylinders. According to senior officials from the Petroleum Ministry, household LPG bookings surged by nearly 60% on Friday compared to the daily average, reflecting growing public anxiety over potential shortages.
LPG Crisis in India : The Root Cause: Strait of Hormuz Disruption
The current crisis stems from the escalating conflict in West Asia, which has severely disrupted maritime traffic through the Strait of Hormuz. This narrow sea passage is a critical chokepoint for India’s energy security.
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India imports nearly 60% of its total LPG requirement.
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Out of these imports, 90% arrive via the Strait of Hormuz. The disruption effectively means that over 50% of India’s usual LPG consumption volumes are currently facing supply constraints.
LPG Crisis in India : Key Measures Taken by the Government
To manage the demand-supply gap and curb hoarding, the Ministry of Petroleum & Natural Gas, led by Joint Secretary Sujata Sharma, has announced several emergency measures:
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Prioritizing Households: The government has directed oil marketing companies (OMCs) to prioritize domestic consumers over commercial and industrial units.
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Increased Gap Between Bookings: To prevent hoarding, the mandatory waiting period between two cylinder bookings has been increased from 21 days to 25 days in urban areas and 45 days in rural areas.
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Boosting Domestic Production: Refiners have been ordered to maximize LPG output, resulting in a 31% increase in domestic production compared to pre-conflict levels.
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Crackdown on Black Marketing: Authorities have intensified raids across the country. Over 1,300 surprise inspections were conducted in a single day to check for illegal hoarding and theft.
LPG Crisis in India : Relief for the Hospitality Sector
After an initial halt, the government has decided to release 20% of the average monthly requirement for commercial use (hotels and restaurants) to prevent a total shutdown of the food industry. Businesses are also being encouraged to switch to alternative fuels like PNG, kerosene, or biomass temporarily.
