As the Iran war enters the third week, Indians have reported a cooking gas shortage amid a conflict-driven supply shock. So far, Centre has maintained that the country has adequate crude supplies and refined fuel stocks to meet local fuel demand.
India, the world’s third-biggest oil importer and consumer, meets over 40% of its crude imports and 90% of of its LPG imports from West Asian nations, including Saudi Arabia and Qatar.
With the Strait of Hormuz being blocked, India has managed to partially offset crude oil supplies through alternative sources, such as Russia, and West Africa. However, sourcing from outside of the Middle East is costlier due to higher freight and insurance charges.
The Indian government has been prioritising supplies to domestic household kitchens. Supplies to commercial establishments, such as hotels, were initially cut off, but later gave a fifth of their requirement.
The government has hiked the cost of both domestic and commercial LPG cylinders amid supply disruptions. The price of a 14.2 kg domestic cooking gas cylinder rose by ₹60, while the price of a 19 kg commercial cylinder increased by ₹144 in early March across major cities.
No revisions have been made since.
City-wise LPG rates
The following retail rates are currently active in major cities across India:
| City | Domestic LPG price | Commercial LPG price |
|---|---|---|
| New Delhi | ₹913 | ₹1,884.50 |
| Mumbai | ₹912.50 | ₹1,836 |
| Kolkata | ₹939 | ₹1,988.50 |
| Chennai | ₹928.50 | ₹2,043.50 |
| Hyderabad | ₹965 | ₹2,105.50 |
| Lucknow | ₹950.50 | ₹2,007 |
| Bengaluru | ₹915.50 | ₹1,958 |
| Patna | ₹1,002.50 | ₹2,133.50 |
The differences in LPG prices across the states are because of the local Value Added Tax (VAT) and freight charges.
LPG cylinder prices remain unchanged for low-income households
Despite the hike in commercial and domestic LPG cylinders, the prices have remained unchanged for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY), according to a PTI report.
The scheme covers over 10 crore gas connections provided to low-income households across the country.
India to prioritise domestic fuel demand
India said it will prioritise meeting domestic fuel demand before considering requests from several neighbouring nations, including Bangladesh, seeking additional supplies from India to offset shortages triggered by ongoing geopolitical tensions.
“Rashtrahit Sarvopari (Nation First),” said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas. “Domestic fuel demand has to be met first. If there is a surplus after meeting all of the domestic demand, a decision can be taken by the appropriate authority.”
She said ensuring adequate domestic availability remains the primary focus, with exports to be evaluated only after internal demand is fully met.
Centre promise 10% more LPG
Centre has promised to increase supplies of commercial LPG to states that fast-track the rollout of piped gas networks in a bid to ease pressure on the cooking fuel availability.
The government has offered to raise commercial LPG supplies to 30 per cent in states that expedite the rollout of piped natural gas – an easier alternative to LPG for household kitchens and commercial establishments.
“LPG users should shift to PNG wherever there is a city gas distribution (CGD) network nearby,” she said, adding that her ministry has written to states, offering 10 per cent more commercial LPG if they grant deemed permissions to all old applications, and the same after 24 hours of new application for laying pipelines, cut annual rental/lease charges and allow dig and restore schemes.