LPG bookings close to normal, but situation continues to be worrisome

NEW DELHI: (Mar 19) Bookings for domestic LPG refills are approaching pre-war normal levels, signalling a gradual return to normalcy, but concerns persist as supply restrictions on commercial consumers, including hotels, remain in place due to ongoing disruptions in input supplies caused by the West Asia conflict.

Over 33 crore domestic LPG consumers had, on average, booked about 55 lakh cylinders daily before the February 28 military strikes by the US and Israel on Iran. The escalation triggered sweeping retaliation from Tehran, effectively shutting the Strait of Hormuz - a critical shipping corridor used by major Gulf producers such as Saudi Arabia, Qatar and the UAE to export crude oil, gas and LPG to key markets including India.

The shutdown of the Strait of Hormuz blocked India's access to almost 60 per cent of its LPG, leading to curtailment of supplies to commercial users and triggering panic buying by domestic users, which peaked to 87.7 lakh on March 13.