India Faces Severe LPG Crisis Amid Middle East Tensions, Forcing Supply Restrictions

New Delhi. A severe crisis in cooking gas (LPG) supply has emerged in India due to the ongoing military tensions in the Middle East. The escalating conflict between Iran and Israel-America has blocked maritime routes supplying gas, leading to a complete halt in commercial gas supply across 10 major Indian states.

This decision has pushed lakhs of hotels, restaurants, and industries in Madhya Pradesh, Maharashtra, Rajasthan, Punjab, Haryana, and the southern Indian states of Telangana and Andhra Pradesh to the brink of closure. The direct impact of the gas shortage is now being felt in ordinary households as well.

The government has implemented a new rule to conserve domestic gas reserves, stipulating that consumers can only book a new cylinder 25 days after receiving the previous one. Previously, the booking interval was 21 days. Furthermore, to curb black marketing and hoarding of gas, mandatory biometric or OTP authentication is now required at the time of delivery.

The main cause of the crisis is considered to be the near-closure of the Strait of Hormuz, through which 20 percent of the world's petroleum is transported. As this route has become unsafe due to tensions with Iran, oil tankers have been halted.

India imports 54 percent of its gas requirements through this route. Additionally, imports to India have dropped by 40 percent following drone attacks on LNG plants in Qatar, which halted production.

Amidst this supply decline, the government significantly increased gas prices effective from March 7. The price of domestic gas cylinders was raised by 60 rupees, and commercial cylinders by 115 rupees.

Amidst such high prices and scarcity, hotel operators have appealed to the government, stating that their businesses are collapsing during the wedding season. In Pune, Maharashtra, the shortage has become so severe that gas-powered crematoriums have also had to be temporarily shut down.

To control the situation, the Indian government has formed a high-level committee of executive directors from various ministries. The government is currently attempting to import gas from alternative countries such as the US, Russia, and Algeria. Officials from Indian Oil have urged customers not to panic and to avoid unnecessary stockpiling.

Internationally, G-7 nations are also discussing the supply of oil and gas from their emergency reserves, raising hopes for some relief in the coming days.