Government-owned Oil Marketing Companies (OMCs) are now preparing to fill 10 kg of gas in 14.2 kg LPG gas cylinders used in homes. The aim is to make available the limited stock to as many families as possible. Along with this, cylinder prices may also be reduced. Amid the ongoing war between US-Israel and Iran, the latter recently launched missile attacks on energy facilities in the Middle East. Due to damage to plants and closure of the Hormuz route, the shortage of LPG gas in India may increase further. Oil companies have taken this decision for this reason. 10KG gas will last for one month According to the Economic Times report, oil companies believe that a 14.2 kg cylinder typically lasts 35 to 40 days. If it is filled with just 10 kg of gas, it will last a family for about a month. The gas saved from this can be delivered to homes where there is currently a shortage. Companies currently have few options left, as new shipments are not coming from Gulf countries. Cylinder prices will also decrease, sticker will be placed for identification If this scheme is implemented, cylinder prices will also be reduced in the same proportion. Currently, the price of a 14.2 kg cylinder in Delhi is ₹913 and in Mumbai is ₹912.50. Customers will have to pay less when they get 10 kg gas. For identification, a new sticker will be placed on these cylinders, which will show the correct quantity of gas. Changes will happen in bottling plants: Need to recalibrate system Implementing this change is not so easy. Bottling plants will need to reset their weighing systems. Along with this, several regulatory approvals will also be required. Officials fear that sudden change may create confusion and opposition among people, especially when elections are approaching in some states. Supply situation concerning: 6 tankers stuck in Persian Gulf Petroleum Ministry Joint Secretary Sujata Sharma said several times last week that LPG supply is ‘concerning’ and needs to be conserved. India imports 60% of its LPG needs, of which 90% used to come from Gulf countries. Last week, two ships arrived in India from the Hormuz route, carrying only one day’s worth of gas consumption. Currently, 6 Indian gas tankers are stuck in the Persian Gulf waiting for the route to open. 2 Reasons for increase in crude and gas prices 1. Qatar’s Ras Laffan Plant Shutdown Iran’s drone attacks have caused significant damage to Qatar’s Ras Laffan. This is the world’s largest LNG hub and about one-fifth (20%) of global supply comes from here. After the attack, this plant has been temporarily shut down. This has halted the supply. 2. 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. Given the risks, no oil tankers are passing through there. 20% of the world’s total petroleum passes through here. Countries like Saudi Arabia, Iraq and Kuwait also depend on this for their exports. India gets 50% of its crude oil needs and 54% LNG through this route. Iran itself exports through this route. Government has taken these steps regarding the LPG crisis: Post navigation Zara closes half of its stores in China:Adapts premium pricing strategy to compete with Chinese fashion brands like ‘Shein’ ‘Temu’
