The escalating West Asia conflict has sent shockwaves through the Indian energy supply chain, prompting the Ministry of Petroleum and Natural Gas to direct the immediate ramp-up in domestic Liquefied Petroleum Gas (LPG) production. In an effort to ensure the country’s energy security, the government has stepped up LPG supply to households, leading to the complete stoppage of commercial LPG supply across the country’s prominent cities, including Mumbai, Bengaluru, and Kolkata.
Announcing the decision via the popular microblogging site X (formerly Twitter), the Ministry stated, “In light of the current geopolitical disruptions to fuel supply and constraints on LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic use.”
New ’25-day’ rule to check hoarding
To bridge the energy gap and curb the black marketing of LPG, the Centre has mandated the new rule that requires consumers to wait at least 25 days prior to booking the second refill.
Though the government claimed that the 14.2 kg cylinders are still available, this is a major shift from the previous system, where refills could be ordered within 48 hours.
In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
Mumbai: Delays in refills go up to 8 days
The ripple effects of the US-Israel strikes against Iran are now being felt in Mumbai, where citizens are now waiting for two to eight days for refills of their domestic gas cylinders.
Though the citizens are feeling the pinch, the commercial sector is in a freefall. The suburban dealers of gas cylinders have confirmed that the supply of commercial cylinders for the hospitality industry has been stopped entirely since Sunday. Analysts are now predicting a dangerous shift towards the misuse of domestic cylinders in the commercial sector.
Bengaluru & Kolkata: Eateries on the brink of shutdowns
The hospitality industry in Bengaluru and Kolkata is on the brink of a major crisis.
In Bengaluru: According to the Bangalore Hotels Association, only 10% restaurants in Bengaluru got their gas supply on Monday.
In Kolkata: Bakeries and restaurants are looking for alternatives after the Ministry suspended the distribution of Non-Domestic Non-Exempted Cylinders.
Interestingly, essential services such as hospitals and educational institutions are exempted from the gas crisis and will continue to receive imported LPG. Establishments connected to piped gas networks, such as GAIL’s infrastructure, are also unaffected.
Government resilience and ‘non-impacted’ routes
Though the gas crisis is affecting many in the country, Union Petroleum Minister Hardeep Singh Puri assured the general public of India’s resilience in the energy sector. While speaking with media professionals, Puri said, “Uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict.” Puri made this statement on X, stating, “Uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict.”
