Cooking gas rates have gone up across India as a result of the disruption in the supply chain caused by the growing conflict situation in West Asia. The rates have gone up for both domestic and commercial LPG cylinders.
According to a report by Mint, the rates of the standard domestic LPG cylinder containing 14.2 kilograms of gas were raised by ₹60. In the same way, the rates of the 19-kilogram commercial LPG cylinder were raised by ₹144. This has come at a time when the energy supply chain has been affected owing to the growing tension between the United States, Israel, and Iran.
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West Asia conflict disrupts LPG supply chain
The recent hike in LPG prices can be traced to the disruptions caused by the on-going conflict in West Asia. The recent exchange of military actions between the United States, Israel, and Iran has had an impact on the shipping routes in West Asia.
The closure of the Strait of Hormuz has had a major impact on the fuel supply chain. India imports 85-90% of its LPG requirements from West Asian countries such as Saudi Arabia and Qatar. Therefore, any disruption to shipping through this narrow maritime corridor has immediate consequences for LPG availability and prices in the Indian market.
City-wise LPG prices
The revised LPG prices vary across cities. According to the report, the cost of domestic and commercial cylinders in major urban centres includes:
New Delhi: Domestic ₹913 | Commercial ₹1,884.50
Mumbai: Domestic ₹912.50 | Commercial ₹1,836
Kolkata: Domestic ₹939 | Commercial ₹1,988.50
Chennai: Domestic ₹928.50 | Commercial ₹2,043.50
Hyderabad: Domestic ₹965 | Commercial ₹2,105.50
Lucknow: Domestic ₹950.50 | Commercial ₹2,007
Bengaluru: Domestic ₹915.50 | Commercial ₹1,958
Patna: Domestic ₹1,002.50 | Commercial ₹2,133.50
Restaurants, canteens feel the impact
The shortage of LPG is already being felt by food businesses across the country. Restaurants have started changing their menus or removing some of the dishes, as they take longer to cook. Some restaurants have stopped serving some of the dishes, as they use more cooking gas, for instance, mutton dishes.
Some restaurants in cities like Hyderabad have started using firewood stoves to overcome the shortage. Community kitchens, langars, and government canteens have also started removing some of the dishes from their menus.
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Government steps to manage the shortage
To ensure the availability of fuel, the Centre has invoked the Essential Commodities Act, 1955, which enables the government to regulate the production, storage, and distribution of such fuels in the country.
The government is also exploring ways to import more LPG from other countries such as the United States, Norway, Canada, and Russia, instead of relying on supplies from the Gulf region. However, it would depend on the duration for which the shipping routes are affected.
