The impact of increasing tension in the Middle East and the ongoing conflict between America and Iran is now directly reaching the kitchens of common citizens. In fact, the blockage in the Strait of Hormuz has put immense pressure on India’s oil, gas and supply chains. The stock of LPG in the country is depleting rapidly. As a result, state oil companies are now formulating a new strategy. Under the scheme, a proposal has been made to reduce the quantity of gas in the standard 14.2 kg LPG cylinders used in households to around 10 kg, to ensure that the limited available stock reaches more households. Considering this situation, let us now tell you what would be the price if the cylinder contains only 10 kg of gas instead of the normal 14.2 kg.
Why was this step necessary?
India imports about 60 percent of its total LPG requirement, of which about 90 percent of the supply comes from the Gulf countries. However, the current geopolitical situation has severely disrupted this supply chain. Due to recent tensions between the US, Israel and Iran, very few ships from the Gulf region have been able to reach India. Even last week, only two ships reached India, carrying a total of about 92,700 tonnes of LPG. This quantity of LPG is equal to one day’s consumption of the entire country. Apart from this, several Indian LPG tankers are stranded in the Persian Gulf.
How will 10 kg of gas be enough?
Government oil companies estimate that for an average family, a standard 14.2 kg cylinder lasts about 35 to 40 days. As a result, even a 10 kg gas cylinder should be enough for about a month of use. Apart from this, the gas that will be saved by this change can be supplied to those houses where the cylinders are on the verge of exhaustion. This will ensure that no one faces shortage of cylinders, and supplies reach those most affected by the LPG crisis.
Now how much will a cylinder cost?
If this plan is implemented, new stickers will be placed on the cylinders with new information written on them. This will make it clear that the amount of gas in the cylinder is less; As a result, the price of gas will also be reduced in proportion to the quantity supplied. However, implementing this measure will require technical changes at the bottling plant as well as certain regulatory approvals. Apart from this, with the implementation of this change the price of the cylinder will also be decided. It is worth noting that the daily consumption of LPG in the country is around 93,500 tonnes, out of which around 80,400 tonnes is used for domestic purposes. Meanwhile, total consumption declined by nearly 17 per cent in the fortnight before March—a trend seen as a sign of an impending LPG crisis. In view of this situation, Petroleum Ministry officials have described this scenario as worrying and have advised consumers to exercise restraint in the use of gas. Nevertheless, regarding the current situation related to LPG, the government says that domestic LPG supply is continuing without any interruption.