Government Increases LPG Supply Amid Strait of Hormuz Tensions
Govt steps up LPG supply, urges calm amid Strait of Hormuz concerns
Business Standard
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In response to rising demand and concerns over the Strait of Hormuz, the Indian government has ramped up the supply of small 5-kg LPG cylinders, selling 6.6 lakh since March 23. Authorities are also combating hoarding and black marketing while ensuring domestic LPG and piped natural gas supplies remain stable.
- 016.6 lakh 5-kg LPG cylinders sold since March 23.
- 02Over 90,000 cylinders sold in a single day on April 4.
- 03Government action includes seizing over 50,000 cylinders to combat hoarding.
- 04Domestic LPG and piped natural gas supplies prioritized for households and essential services.
- 05Commercial LPG supplies capped at 70% of pre-crisis levels.
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The Indian government has significantly increased the supply of small 5-kg LPG cylinders to meet rising demand amid concerns related to the Strait of Hormuz. Since March 23, approximately 6.6 lakh of these cylinders have been sold, with over 90,000 sold on April 4 alone. Unlike the subsidized 14.2-kg cylinders, the smaller cylinders are sold at market rates and do not require address proof for purchase. The government has taken strong measures against hoarding and black marketing, seizing more than 50,000 cylinders and issuing over 1,400 show-cause notices to distributors, resulting in the suspension of 36 dealerships. Priority has been given to supplying domestic LPG and piped natural gas (PNG) for households and essential services like hospitals. Commercial LPG supplies have been restricted to 70% of pre-crisis levels to manage demand effectively. The oil ministry reassured the public that all refineries are operating at high capacity and urged citizens to avoid panic buying.
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The increased supply of LPG ensures that households and essential services have access to fuel during a time of heightened demand, alleviating concerns over shortages.
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