Iran war impact: OMCs plan smaller LPG cylinders to boost supply
Due to the impact of the war in Iran on LPG supplies, families could be receiving a reduced amount of 10 kg per standard 14.2 kg gas cylinder soon. This initiative is a preventative measure to optimize the dwindling resources, enabling more househ...
New Delhi: State-run oil companies are considering supplying only 10 kg of LPG in 14.2-kg cylinders to households to stretch limited stocks as domestic inventories fall and imports shrink amid the Iran war, according to industry executives.
The move aims to conserve LPG while maintaining supply to as many homes as possible, an executive said. A standard 14.2-kg cylinder lasts 35-40 days for an average household, according to companies’ estimates. A 10-kg refill could sustain a home for nearly a month, allowing available volumes to be shared more widely during the crunch.
If implemented, cylinders will carry a new sticker indicating the reduced fill, with prices cut proportionately, executives said. Bottling plants will need to recalibrate weighing systems, and some regulatory approvals may be required. Companies worry a sudden reduction may trigger confusion, protests and political pushback, especially with key state elections approaching. Executives, however, warn supply conditions may worsen over the next month, leaving limited options. LPG availability is tightening.
Worrisome Situation
ADVERTISEMENT
No new shipments from the Gulf are en route, and only two carriers-—bringing a combined 92,700 tonnes, roughly a day of national consumption—crossed the Strait of Hormuz last week. Partial restoration of supplies to commercial users has added pressure on depleted stocks. LPG supply is “worrisome” and must be conserved, petroleum ministry joint secretary Sujata Sharma said repeatedly last week, even as the government maintains that household deliveries remain regular. After initially halting supplies to commercial users, the Centre has restored 40% of their prewar allocation.
Households consume 80,400 tonnes, or 86%, of India’s daily LPG use of 93,500 tonnes. In the first half of March, overall consumption fell 17%, indicating the impact has extended beyond commercial and industrial users.
India imports 60% of its LPG requirement, with the Gulf accounting for 90% of supplies before the conflict. US President Donald Trump has threatened to obliterate Iranian power plants if the Strait of Hormuz remains closed to shipping. Six India-flagged LPG tankers are waiting in the Persian Gulf to cross the Strait.
