Amid a shortage of LPG cylinders due to an effective halt in maritime traffic through the Strait of Hormuz, the government on Saturday, 14 March, began commercial LPG cylinder distribution across all states and Union Territories (UTs).
“After extensive discussions, the government has decided that commercial consumers will also get LPG. Commercial cylinder distribution has been started in various states and consumers have started receiving them,” Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas said.
The move is expected to provide much-needed relief to Indian industries, particularly the hospitality industry, which has experienced major difficulties owing the LPG cylinder shortages.
Panic buying on the rise
However, Sharma also said that panic buying continues to rise — LPG bookings by household consumers jumped nearly 60% on Friday — despite there being adequate stocks available to meet domestic household demand for LPG.
The government has also asked oil marketing companies (OMCs) to launch a campaign promoting digital booking of LPG refills and spread awareness among consumers to prevent panic buying.
India’s LPG needs
India depends on imports to meet around 60% of its LPG requirement, with 90% of LPG imports coming via the Middle East through the crucial Strait of Hormuz, where maritime traffic continues to remain stalled owing to the conflict between US and Israel on one side and Iran on the other.
Even as two India-flagged tankers transited through the contested Strait early on Saturday, US President Donald Trump vowed American naval support to keep traffic through the crucial strait moving.
As the situation in the Middle East continues to develop, follow LIVE updates on LPG cylinder prices and supply, right here.