The LPG shortage in India following Iran’s wartime blockage of the Hormuz Strait is leaving people and businesses in India frightened and suffering real losses, Betwa Sharma reports.
Betwa Sharma
What began with unprovoked US–Israel airstrikes on Iran and then rapidly grew into a regional West Asian war is now impacting daily life for people in the world’s most populous nation.
There is a sudden critical shortage of cooking gas in India, pushing up prices for what fuel is available, forcing restaurants to reduce menus or shut down and leaving people queueing for hours for gas cylinders.
India imports a large share of its crude oil and liquefied petroleum gas (LPG–used for cooking) from countries such as Saudi Arabia, Qatar and the United Arab Emirates. Much of that supply passes through the Strait of Hormuz, the narrow, strategic shipping route 33 km between Iran and Oman that has been shut because of the U.S.-Israeli attack.
The Indian government inexplicably appears to have been taken by surprise. All along, it has maintained that there is no fuel shortage and that supplies are adequate and closely monitored. But the Opposition has accused the government of “lying” to the people, leaving the country unprepared, and demanded that Prime Minister Narendra Modi address Parliament on the issue.
Crude oil imports to India are less affected because India has a diverse supplier base, including Russia, (from which the U.S. is now “letting” India import again). LPG is a different story: of the 60 percent that India imports, 90 percent passes through the Hormuz Strait.
Iran’s Revolutionary Guard has been attacking commercial ships in Hormuz and has warned that vessels connected to the United States, Israel or their allies (India backs Israel) could be targeted if they try to pass through without Tehran’s approval.
Without any prior warning from Modi’s government about potential fuel shortages caused by the war, the first clear sign that a serious crisis was happening came when restaurants and hotels in major cities suddenly began cutting back or shutting down, unable to secure commercial LPG cylinders for their large kitchens.
Next, as household LPG cylinders became harder to obtain, long lines formed outside gas agencies, with people queuing for hours amid confusion, fear and panic over shortages and supply disruptions.
Meanwhile, induction stoves, which use electromagnetic fields to heat ferromagnetic cookware such as cast iron or magnetic stainless steel, were sold out in stores and online.
The crisis highlights how little long-term planning there has been for heavily imported products, leaving people and businesses exposed, frightened and suffering real losses.
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India’s electricity system is fairly safe because most of it runs on home-grown coal, but if the conflict drags on, rising energy costs could eventually push up electricity bills too.
While petrol and diesel stations are also mostly functioning, uncertainty and global oil price spikes stemming from the West Asia crisis have driven up cooking gas prices.
LPG cylinders are reportedly being sold on the black market at inflated prices, sometimes Rs 1,500 ($5.35) or more for a domestic cylinder and up to Rs 3,000 ($10.70) for commercial ones. (With moderate use a 14.2 kg cylinder lasts about 30 days).
Some hotels in Maharashtra are cooking food on open stoves using firewood. One hotel owner said, “In this heat, our staff can’t keep working like this for long. We may have to close.”
In Lucknow, the capital of Uttar Pradesh, India’s most populous state, tea vendors started using “chulhas” (traditional wood or coal-fired stoves) to make tea.
The Bhubaneswar Municipal Corporation (BMC) is allowing small business owners to use charcoal stoves.
Hostels and workplace kitchens are switching to cold foods and beverages.
Student hostels in Kota, Rajasthan, a major coaching hub for competitive exams, are switching to wood and coal-fired stoves.
An automobile parts plant in Gujarat has dropped fried food and replaced tea and hot soup with lemon water, buttermilk or curd in its canteen, while in Tamil Nadu, a hostel association has asked members to temporarily stop making tea and coffee.
In Mumbai, washermen, who depend on LPG cylinders to run their drying machines, are scrambling to buy cylinders on the black market at steeply inflated prices.
Passengers may need to carry their own food on trains, as Indian Railways may suspend catering services due to a shortage.
Someone posted on X that a friend’s wedding next week is facing a hiccup: the caterers are requesting the family to provide LPG cylinders themselves.
After being slow to warn of the fuel crunch, the government invoked emergency powers under the Essential Commodities Act to order LPG distributors and oil marketing companies to boost LPG production and prioritise domestic supply.
Maharashtra Natural Gas Limited, which supplies natural gas to homes and commercial establishments, informed commercial customers that gas supply for industrial and commercial users will be limited to 80 percent of their average usage over the last six months.
The Gujarat government has reduced gas supply to industries by 50 percent, while fertiliser plants and milk-processing units will face a 40 percent cut in supply.
State governments have also launched crackdowns on hoarding and black-marketing of LPG cylinders.
India’s neighbours, Bangladesh, Sri Lanka and Nepal, are also affected.
In Bangladesh, which imports about 95 percent of its fuel, petrol is being rationed at pumps, and some universities have been closed early to conserve energy. To address the shortage, the government has secured additional diesel supplies from other countries, including India.
In Nepal, households have reported long waits for LPG cylinders, though the Nepal Oil Corporation says supplies are fine and asks people not to panic.
Sri Lanka has raised retail fuel prices by over 8 percent to stem hoarding and panic buying as global crude oil prices surge above $100 per barrel amid rising tensions in West Asia (now between $90 and $100).
The Indian government is asking people not to panic-buy, saying a cylinder will still be delivered within about two and a half days after booking, but they’re also stretching the minimum gap between bookings from 21 to 25 days
Online booking remains the primary way to order LPG cylinders, but the recent surge has overwhelmed the system. In many places, servers have crashed or stopped working, leaving people unable to book refills and forcing them to visit gas agencies in person.
One man said, “There are only problems. We can’t get a gas cylinder. We are unable to book. No one is picking up. The common man is suffering. I’m a renter. How will I cook?”
c. Consortium News
