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The US-Israel war with Iran has led to a nationwide shortage of LPG. Long lines are seen outside gas agencies. Black marketing and hoarding of gas cylinders is also taking place.
In Kerala, nearly 40% of restaurants are facing closure due to a shortage of cooking gas. Similar situations exist in other states, including Madhya Pradesh, Rajasthan, and Uttar Pradesh. Meanwhile, in Delhi, Congress workers protested against the central government over the deteriorating LPG supply situation. They brought clay stoves with them to express their protest.
Now read reports from different states Madhya Pradesh: LPG online booking stalled…waiting increased by 7-8 days Online booking of LPG cylinders in Madhya Pradesh is almost stalled. Due to server downtime, people across the state, including Bhopal, Indore, Gwalior, Ujjain, and Jabalpur, are unable to book cylinders. The waiting period has reached 7 to 8 days. Gas agencies are crowded with people from morning till evening. Amidst the gas shortage, induction cooker prices have doubled. Its sales in Bhopal have increased sevenfold. Meanwhile, gas in 50,000 hotels and restaurants is on the verge of running out. Hotels and restaurants have not received commercial cylinders for 4 days. According to Tejkul Pal Singh Pali, President of the Bhopal Hotel Association, about 2,000 hotels and restaurants in Bhopal have not received a single cylinder in 4 days. Rajasthan: Restaurants being closed, and employees sent home Businesses are starting to shut down due to the depletion of gas stock in hotels and restaurants. Restaurants in Chittorgarh have closed down and employees have been sent home. Restaurants are also starting to close in Sawai Madhopur. Preparations are underway to close 150 resorts in Sam, Jaisalmer. In Jaipur, tea stalls, sweet shops, and dhabas have started using domestic cylinders instead of commercial ones. Due to the shortage of gas cylinders in Kota, the demand for wood and coal furnaces has increased. Furnaces weighing 35 to 40 kg are being made for messes and hostels. Uttar Pradesh: Cylinder available instantly for 1600 rupees in the black market In Lucknow, people are not getting cylinders even after standing in line all day long. People claim that despite all this, the 950 rupee cylinder is available instantly for 1600 rupees. Commercial cylinders are also easily available for 3500 rupees. Haryana: Wedding food started cooking on a wood stove Due to the war between America and Iran, the gas crisis in Haryana and across India is visible at weddings and dhabas. The government has limited the supply of commercial cylinders for hotel, restaurant, and dhaba operators. Induction: 1.80 lakh sold in 1 month, 1.34 lakh sold in just 1 day Due to the shortage of LPG gas, the demand for induction cooktops (electric cooktops) has rapidly increased on online platforms. On Amazon, sales of over 1.34 lakh induction cooktops were recorded in a single day. Normally, about 1.80 lakh induction cooktops are sold in a month. In the last four days, including Amazon and other e-commerce companies, about 5 lakh induction cooktops have been sold online. Out of approximately 100 companies selling induction cooktops on Amazon, 70 are out of stock.
LPG cylinder booking rules changed thrice in 6 days March 6: The lock-in period for domestic LPG bookings was increased to 21 days. Previously, there was no such rule regarding bookings. March 9: Due to sudden increase in demand, oil companies extended the lock-in period in cities to 25 days. March 12: The gap for booking cylinders in rural areas was increased from 20 days to 45 days, so that the supply of cylinders could be managed. People are booking in 15 days instead of 55 days In villages, the average family uses only about 5 cylinders per year. Therefore, there was no need for frequent rebooking. Recently, it was observed that due to rumors, people were quickly booking and stocking up on cylinders even when they were not needed. The ministry explained that people who previously booked cylinders every 55 days on average had suddenly started booking every 15 days. This advance and hasty booking was putting pressure on the system. Food delivery orders decreased by 50 to 60% ‘Gig and Platform Service Workers Union’ said that due to the shortage of LPG, food delivery orders on platforms like Zomato and Swiggy have decreased by 50 to 60%. This has created a crisis for the earnings of delivery partners and other workers associated with this sector. The union has written a letter to the Union Labor Minister demanding immediate intervention. The union demands that Zomato, Swiggy, and other platforms immediately provide a relief amount of Rs 10,000 to every affected worker. There should be a 3-month moratorium on deactivating workers’ IDs. The government presented an account of the preparations In a joint press conference of the Ministries of Petroleum, External Affairs, Shipping and Information and Broadcasting, it was made clear that there is sufficient stock of fuel in the country, but the shadow of war is looming over the supply chain. Domestic LPG production, which had increased by 25% yesterday, has now risen by 28%. Nearly 100,000 petrol pumps are operational across the country. There are no reports of stock shortages anywhere. Restaurants and hotels have been allowed to use biomass, kerosene or coal for a month so that LPG can be used only for essential sectors.
In urban areas, people will not be able to book a second cylinder before 25 days. This step has been taken to prevent hoarding and ensure everyone has access to gas as needed. Government distributing 50 lakh cylinders daily Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said, “We import about 60% of our LPG requirement from outside, and about 90% of it comes from the Strait of Hormuz. The situation is a bit difficult, but the government is making every possible effort to ensure supply to domestic consumers.” He said, We deliver approximately 5 million cylinders every day. Currently, there are no reports of shortages anywhere at the distribution level. But due to panic, bookings have increased manifold. State governments have been asked to prepare a list of beneficiaries so that cylinder deliveries can be made on a priority basis. Government has taken 5 essential steps so far 1. High-level committee formed: In view of the crisis, the Ministry of Petroleum 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: The rules for booking domestic cylinders have been changed. Consumers will be able to book a second cylinder only 25 days after the first cylinder is delivered. 4. OTP and Biometric Mandatory: To prevent gas hoarding, delivery agents are strictly using OTP or biometric verification. 5. Order to Increase LPG Production: The 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 an 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 danger, no oil tanker passes through there. 20% of the world’s total 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 and 54% of its LNG through this route. Iran itself exports through this route.
2. LNG Production Halted Due to Drone Attack on Plant Last week, the US and Israel struck Iran. In response, Iran targeted American bases in countries like UAE, Qatar, Kuwait, and Saudi. Following Iran’s drone attack, Qatar, the largest gas supplier to India, has halted production at its LNG plant. This has reduced gas supply in India. India imports 40% of its LNG needs (approximately 27 million tons annually) from Qatar. Government increased domestic gas cylinder prices by ₹60