LPG crisis deepens:Citizens face long queues at gas agencies; govt urges residents to avoid panic buying

Due to the war between US-Israel and Iran, the shortage of LPG is increasing across the country. In Siddharthnagar, Uttar Pradesh, people stayed outside the gas agency overnight for cylinders. In Bihar and Madhya Pradesh (MP), the situation is such that people are queuing up outside gas agencies from 4 am. Black marketing and hoarding of gas cylinders are also happening. In many places, commercial cylinders worth ₹2,000 are being sold for ₹4,000. Along with this, action is also being taken to seize cylinders. However, the government claims that there is no fuel shortage in the country and people need not panic. Union Petroleum Minister Hardeep Singh Puri has also said in Parliament that everything is under control. Madhya Pradesh: From elderly to children, everyone rushing for cylinders The LPG crisis is deepening in Madhya Pradesh. For 5 days, more than 50,000 hotels and restaurants have not received commercial cylinders. Many hotels have only 24 to 48 hours of gas left. As a result, they are on the verge of closing. However, alternative arrangements like induction and diesel furnaces are being used. Along with this, domestic cylinders have also increased problems. From elderly to children are running around for cylinders in many cities including Bhopal, Indore. Some are standing in queues for hours with cylinders while others are receiving cylinders under police supervision. Uttar Pradesh: People line up since night for cylinders in Siddharthnagar, chaos at gas agency in Kannauj The cooking gas cylinder crisis is severe in UP. In Siddharthnagar, people sat outside the gas agency since night for cylinders. On Saturday morning, they kept waiting for their turn. But they haven’t received cylinders yet. Meanwhile in Kannauj, people reached the gas agency for cylinders and created a ruckus. Bihar: Long queues of people outside gas agencies Long queues of people are forming outside gas agencies. People have to wait for hours. The effect of cylinder shortage is now visible in the market as well. Due to unavailability of gas, the demand for wood and coal has increased, causing their prices to rise rapidly. Additionally, the price of induction cookers has increased by nearly five times. Haryana: People reaching directly to agencies to get cylinders It is taking about 25 days to wait for domestic cylinder delivery. Due to online booking being closed at many places and no response to phone calls, people are reaching directly to agencies. Meanwhile, with commercial gas supply being disrupted, hotel-dhaba operators have indicated increasing prices of food and beverages. There is an atmosphere of scramble for gas cylinders. Queues of consumers are forming outside many gas agencies. Rajasthan: Wood being used instead of cylinder in hotels, preparation of induction and stoves in Gurudwara People are facing difficulties due to the shortage of LPG cylinders. The problem has increased due to the month of Ramadan and wedding season. Organizations caring for disabled children and helpless people, and committees arranging langar are facing difficulties. Himachal Pradesh: Hotel and dhaba operators buying induction cooktops as alternative to commercial LPG gas Amid severe shortage of commercial LPG cylinders in Himachal Pradesh, the demand for electricity-powered induction heaters for cooking has suddenly increased many fold. The situation has become such that shopkeepers who previously could hardly sell one or two inductions per week are now selling 8 to 15 inductions daily. Especially hotel and dhaba operators are buying induction cookers as an alternative to commercial LPG gas. Government’s appeal – Switch from LPG to PNG Joint Secretary of Petroleum Ministry Sujata Sharma said that our refineries and LPG stock is sufficient. She has appealed to the public that those who can shift to piped gas (PNG) should take connection immediately. According to the government, there are about 60 lakh families in the country who have PNG facility near their homes. There is no shortage of PNG in the country and its connection is also available quickly. Black marketing at peak, hoarders charging arbitrary prices While the government claims supply is stable, the ground reality is different. Taking advantage of this crisis, hoarders have started black marketing of cylinders.
In many areas, domestic cylinders are being sold for up to ₹4,000. The Joint Secretary informed that LPG production has been increased by 40%, yet queues outside agencies are not reducing. Message received, but cylinder not delivered People in areas like Ghaziabad and Khoda are extremely troubled. Many people complain that while they received the ‘cylinder delivery’ message on their mobile, the cylinder hasn’t reached their home. Some people are returning empty-handed despite booking 25 days ago due to OTP and other technical issues. People are waiting for their turn from 4 AM to 10 PM. Restaurants and dhabas return to stoves and wood The shortage of both domestic and commercial cylinders has broken the back of small businesses. Many restaurant and dhaba owners are now forced to cook food on electric ovens, coal, or wooden stoves. Shop owners who cannot arrange these alternatives are closing their shops. This has also put delivery partners’ jobs at risk. Police Action: 398 cylinders seized in Madurai Action was taken against hoarders in states to prevent black marketing and illegal storage of cylinders. LPG cylinder booking rules changed three times in 6 days Hope rises from 20 tankers stranded in Hormuz According to Bloomberg’s report, 2 tankers stuck in the Strait of Hormuz have reached India. Currently, 20 more tankers are trying to exit from there. These ships are loaded with crude oil, LPG, and LNG. Talks between India and Iran are ongoing so that these tankers can reach India soon and supply shortages can be addressed. Government has taken 5 essential steps so far 1. High-Level Committee Formed: In view of the crisis, the Petroleum Ministry has formed a high-level committee of executive directors from three oil companies, which will review the supply. 2. Essential Commodities Act Implemented: To control gas supply, the central government has implemented the ‘Essential Commodities Act 1955’ across the country. 3. LPG Booking After 25 Days: Changes have been made to domestic cylinder booking rules. Consumers can book another cylinder only 25 days after the delivery of one cylinder. 4. OTP and Biometric Mandatory: To prevent gas hoarding, delivery agents are strictly using OTP or biometric verification. 5. Order to Increase LPG Production: Government had ordered all oil refineries to increase LPG production. Now production has increased by 28%. 2 Reasons for Supply Crisis 1. Near Closure of Strait of Hormuz The biggest challenge for India is the closure of the Strait of Hormuz. This is approximately 167 km long waterway that connects the Persian Gulf to the Arabian Sea. Due to the Iran war, this route is no longer safe. Considering the risk, no oil tanker is passing through there. 20% of the world’s petroleum passes through here. Countries like Saudi Arabia, Iraq and Kuwait also depend on it for their exports. India imports 50% of its crude oil needs and 54% LNG through this route. Iran itself exports through this route. 2. Drone attacks on plant halt LNG production Last week, the US-Israel struck Iran. In response, Iran has targeted American bases in countries like UAE, Qatar, Kuwait and Saudi Arabia. After Iran’s drone attack, Qatar, India’s largest gas supplier, has stopped production at its LNG plant. This has reduced gas supply to India. India imports 40% of its LNG needs (about 27 million tons annually) from Qatar alone.