India’s cooking gas demand has seen an unusual spike amid panic buying linked to the ongoing conflict involving Iran, Israel and the United States, prompting the government to urge consumers not to rush into LPG bookings.
Officials said domestic production of LPG has been increased by about 30%, with the entire supply currently being directed towards household consumption.
However, daily LPG bookings have jumped sharply to 75.7 lakh cylinders compared with an average of 55.7 lakh before the conflict began, indicating panic booking among consumers, said Sujata Sharma, Joint Secretary in the petroleum ministry.
“I want to appeal to the people that there should be no rumour mongering and there is absolutely no need to panic,” Sharma said.
Supply Concerns Amid Hormuz Disruptions
India earlier met about 60% of its LPG demand through imports. Of this, nearly 90% used to pass through the strategically important Strait of Hormuz, which has been affected due to the ongoing conflict.
The narrow sea passage — roughly 50 miles wide and linking the Gulf with the Arabian Sea — carries about a fifth of the world’s oil and LPG shipments. Reports say multiple tankers have been attacked since the conflict began, disrupting traffic in the region.
In response, the government has ordered an increase in domestic LPG production. A special committee has also been formed to monitor supplies and prepare diversion plans if required.
No Worry on Crude Supply
Officials also said there is no immediate concern over crude oil availability. According to Sharma, India now imports crude from around 40 countries, and current inflows exceed the country’s daily requirement of about 5.5 million barrels.
Meanwhile, Iran has denied reports claiming it had allowed India-flagged tankers to safely pass through the Strait of Hormuz.
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