Oil Companies Plan to Cut 14.2 kg Gas Cylinders To 10 kg Amid LPG Supply Crunch

New Delhi: Amid geopolitical tensions in West Asia which has brought upon an LPG crisis in the country, owing to the closure of the Strait of Hormuz through which one-fifth of the world's energy supply passes, state-run oil companies are now exploring measures including supply LPG in smaller quantitites to households. 

According to a report, oil marketing companies are considering delivering 10 kg of LPG in standard 14.2-kg cylinders, to ensure that more households continue to receive cooking gas amid the supply crunch.

What's Behind This Idea

As per the oil marketing companies, a standard 14.2-kg cylinder ususaly lasts 35-40 days. In case of a 10-kg switch, this gas may even last a month for some households, which would lead to wider distribution of LPG, and could help in managing the cooking gas demand more effectively during the supply crunch.

What Are The Challenges Involved

Bottling units may have to recalibrate their weighing mechanisms to align with any revised refill size. The could require fresh regulatory clearances before it can be rolled out. Moreover, any abrupt reduction in cylinder quantity may run the risk of confusing consumers, which can lead to protests and political backlash.

Supply Crunch Worsens

The pressure on supplies is largely due to disruptions in LPG shipments from the Gulf, a crucial source of India’s energy imports. Reports indicate that no fresh consignments are currently headed towards India. Moreover, the gradual resumption of supplies to commercial users has further depleted existing stockpiles, tightening availability for households.

Heavy Reliance On Gulf Imports

India’s dependence on imported LPG remains significant. Nearly 60 per cent of the country’s requirement is met through imports, with close to 90 per cent of these supplies coming from the Gulf region before the crisis.

This reliance makes India highly vulnerable to disruptions in the Strait of Hormuz. Since early March, movement through the strait has been severely affected, impacting fuel availability and pushing up global prices.

Geopolitical Tensions Add Uncertainty

Reports indicate that Iran is selectively restricting passage through the Strait of Hormuz, allowing some vessels through while blocking others linked to countries it views as adversarial. Iran’s Foreign Minister Abbas Araghchi has said the route remains open only to “friendly” nations. Some Indian-flagged LPG carriers have reportedly been allowed to pass, while others are still awaiting clearance.

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