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Crude oil spike triggers LPG panic in India; rules tweaked, people gather at outlets as West Asia war has global effect
Amid the war between the US, Israel and Iran, panic spread among people in towns and cities with people standing in long queues with LPG cylinders.
The ongoing West Asia conflict between the United States-Israel and Iran has triggered panic for domestic LPG cylinders in several parts of India, with people seen queuing outside gas agencies.
Amid rising global energy prices linked to the crisis, cooking gas prices were hiked by ₹60 per cylinder on Saturday. Seeing the hoarding and surge in frequent bookings of household LPG cylinders, a lock-in period of 25 days has also been imposed.
LPG prices still cheaper than other countries
Non-subsidised LPG, which is commonly used in household kitchens, will now cost ₹913 per 14.2-kg cylinder in Delhi as against ₹853 previously.
Top government sources said the increase was necessitated because of a spike in global energy prices. Despite the increase, the prices are still lower than in most countries in the world, unnamed officials said as per news agencies.
The LPG price rise on Saturday was the second increase in rate in 11 months. The price was last hiked by ₹50 in April last year, news agency PTI reported.
25-day lock-in period between gas booking
Amid the LPG scare, to stop the hoarding and black marketing, the LPG booking period gap has been increased from 21 to 25 days, ANI reported, citing government sources.
The report said that people who were earlier booking LPG cylinders in 55 days had started booking LPG cylinders in 15 days.
It also said that the government has ordered refineries to boost LPG output and asked them to prioritise domestic LPG over commercial connections.
People form queues outside gas agency
Videos also went viral showing people with long queues standing with LPG cylinders.
A video from Uttar Pradesh's Birdpur showed hundreds of people sitting on their empty LPG cylinders lined up outside a gas agency. HT.com could not independently verify the authenticity of this video.
People were reportedly seen standing outside Bharat Gas agency in Noida, with one person telling India Today that he booked LPG five days ago and has still not got it.
Meanwhile, the Press Information Bureau urged citizens not to panic and fall for fake news.
It has said there is no need for panic about India’s energy security, stating that the country has over 250 million barrels of crude oil and fuel stocks, providing a 7–8 week supply buffer across reserves and supply systems.
It also noted on March 6 that India’s refining capacity exceeds domestic consumption, highlighting that there have been no petrol pump shortages in the past 12 years.
Also read: Restaurants complain shortage of commercial LPG cylinders
Pune temporarily shuts gas crematorium
The Pune Municipal Corporation (PMC) on Sunday temporarily shut gas crematoriums in the city following restrictions on the use of LPG components such as propane and butane, PTI reported, citing officials.
The civic body said the Ministry of Petroleum and Natural Gas issued an order on March 5 stating that the available propane and butane will be prioritised for domestic LPG supply.
In view of the resulting gas shortage, the PMC has decided to keep its gas crematoriums closed from March 5 until further notice, a civic official said.
The conflict that began with US Israel strikes on Iran and the counterstrikes by Tehran on US military bases has led to a near halt in tanker movement through the Strait of Hormuz. The Strait of Hormuz is a narrow passageway used by Middle Eastern producers to export oil and gas to global markets. The disruption has sharply curtailed energy shipments from the region, triggering a spike in global oil and gas prices.
