The government disclosed that the cost of a 14.2 kg cylinder has surpassed Rs 1,600 due to the West Asia crisis, with each domestic cylinder incurring an under-recovery of about Rs 700. Following a hike of Rs 29 per cylinder, domestic cooking gas prices have escalated.
The Petroleum Ministry highlighted that the 19-kg commercial cylinder, priced at Rs 3,113.50 in Delhi, reflects the market-driven rates, standing at approximately Rs 164 per kg after multiple increases during the crisis. In contrast, households pay around Rs 66 per kg post-revision, indicating a lower cost compared to commercial gas.
As the conflict in the Strait of Hormuz disrupted a significant portion of global oil traffic, impacting India’s energy imports, about 54% of the country’s LPG consumption faced direct exposure to supply disruptions. Despite this, India managed to ensure the uninterrupted movement of energy cargoes through sustained coordination efforts.
A series of measures were implemented to secure the supply chain amidst the crisis. Domestic LPG production was boosted by over 60%, reaching around 52 TMT to compensate for limited imports. Additionally, efforts were made to diversify sourcing from global suppliers not reliant on the Strait, such as the United States, Canada, and Algeria.
Consumers were encouraged to transition to piped natural gas (PNG) where feasible, reducing the reliance on cylinders. To prevent diversion of subsidized domestic LPG to commercial markets, stringent anti-diversion measures were enforced, including enhanced delivery verification protocols.
