India’s LPG supply chain continues to face stress due to disruptions in the Strait of Hormuz amid the West Asia conflict, even as ...
India’s LPG supply chain continues to face stress due to disruptions in the Strait of Hormuz amid the West Asia conflict, even as fresh shipments and policy interventions bring partial relief. Two Indian-flagged LPG carriers — BW TYR and BW ELM — carrying around 94,000 tonnes of cooking gas, have safely crossed the conflict zone and are expected to dock at Mumbai and New Mangalore by March 31 and April 1, respectively. The cargo is equivalent to roughly a day’s national demand and is expected to ease immediate supply concerns.
Despite these efforts, shortages persist in several cities, triggering panic buying and opportunistic black marketing. In Visakhapatnam, a delivery agent allegedly siphoned off nearly 30 domestic cylinders, exploiting high demand and long waiting periods. Authorities have launched a probe while arranging emergency supplies for affected households.
To stabilise industrial activity, the Centre has increased commercial LPG allocations by 20%, taking overall supply to about 70% of pre-crisis levels. Priority is being given to labour-intensive sectors such as steel, textiles, automobiles, and chemicals. However, industry feedback remains mixed. While steel and engineering sectors see some relief, garment hubs like Tiruppur continue to face disruptions, with production cuts affecting nearly one lakh workers and straining supply chains.
Companies are increasingly turning to alternatives such as piped natural gas, solar-powered heating, and partial fuel-switching, though these come with cost and efficiency trade-offs. Smaller firms remain particularly vulnerable due to limited flexibility.
At the consumer level, the crisis is reshaping buying behaviour. Cities like Prayagraj have reported a sharp surge in demand for electric cooking appliances, including induction cookers, kettles, and microwaves, as households brace for delays in LPG refills.
While incremental supply improvements and adaptive measures are helping cushion the impact, the situation remains fluid, heavily dependent on geopolitical developments and the restoration of stable shipping routes.
Despite these efforts, shortages persist in several cities, triggering panic buying and opportunistic black marketing. In Visakhapatnam, a delivery agent allegedly siphoned off nearly 30 domestic cylinders, exploiting high demand and long waiting periods. Authorities have launched a probe while arranging emergency supplies for affected households.
To stabilise industrial activity, the Centre has increased commercial LPG allocations by 20%, taking overall supply to about 70% of pre-crisis levels. Priority is being given to labour-intensive sectors such as steel, textiles, automobiles, and chemicals. However, industry feedback remains mixed. While steel and engineering sectors see some relief, garment hubs like Tiruppur continue to face disruptions, with production cuts affecting nearly one lakh workers and straining supply chains.
Companies are increasingly turning to alternatives such as piped natural gas, solar-powered heating, and partial fuel-switching, though these come with cost and efficiency trade-offs. Smaller firms remain particularly vulnerable due to limited flexibility.
At the consumer level, the crisis is reshaping buying behaviour. Cities like Prayagraj have reported a sharp surge in demand for electric cooking appliances, including induction cookers, kettles, and microwaves, as households brace for delays in LPG refills.
While incremental supply improvements and adaptive measures are helping cushion the impact, the situation remains fluid, heavily dependent on geopolitical developments and the restoration of stable shipping routes.