LPG Price Update: In recent years, the use of LPG (cooking gas) has increased sharply in India. But now, concerns are rising due to tensions in West Asia, especially the ongoing conflict between Iran and Israel.
The recent US attacks on Iran’s nuclear sites have also led to a rise in global oil prices.
According to industry experts and government officials, if the situation worsens, LPG supply and prices will be hit the hardest.
This could directly impact households across India. A deeper conflict between Iran and Israel may cause LPG prices to go up further.
How Dependent Is India on Iran for LPG?
Over the last ten years, government schemes have helped double the use of LPG in India, and now around 33 crore homes rely on it.
But with this growing usage, dependence on imports has also gone up. At present, India imports about 66% of its LPG needs, with 95% of these imports coming from West Asian countries like Saudi Arabia, UAE, and Qatar.
Is There Only 16 Days’ Supply Left?
As per media reports and government data, India has LPG storage capacity that can last only for 16 days based on average national use.
This means any disruption in supply can create a shortage of LPG cylinders in households.
In comparison, crude oil stocks are in a slightly better position, with refineries and other sources able to meet needs for around 25 days.
Why Is LPG Stock a Bigger Concern?
LPG has fewer alternatives compared to other fuels, which makes its shortage riskier. For instance, piped natural gas (PNG) is available in only about 1.5 crore households.
The supply of kerosene has nearly stopped. So, if LPG supply is disrupted, people—especially in cities—might have no choice but to switch to electric cooking.
What About Petrol and Diesel?
India is largely self-reliant in petrol and diesel. Not only does it produce enough for its own use, but it also exports fuel.
In fact, India exports 40% of its petrol and 30% of its diesel output. If needed, these exports can be redirected for domestic use. That’s why petrol and diesel are not as vulnerable as LPG.
Is the Situation Really That Bad?
Currently, LPG prices differ across cities. In Delhi, it costs ₹853, in Patna ₹942, in Lucknow ₹890, in Mumbai ₹852, in Bhopal ₹858, and in Bangalore ₹855.
Experts say the situation is still under control, and refineries are avoiding panic buying. For now, the supply chain remains stable. However, if the conflict worsens, quick action may be needed.
Will Prices See a Big Hike?
Officials believe that even if the tension increases, any spike in oil and gas prices will be short-lived.
The global supply and demand balance is steady at the moment, and if prices do rise, they are expected to settle back down soon.
