• Source:JND

As the US-Israel war with Iran has entered its second week, the escalating tensions have significantly impacted global energy supply with attacks on crude oil infrastructure and logistic facilities disruptions, leading to prices surging across the globe. The price of gas surged by nearly 50 per cent in European countries after QatarEnergy suspended production of LNG following the attacks on its refineries. The government of India has bolstered the measures to protect consumers from higher fuel costs.

The prices of petrol and diesel will not increase even if the global supply chain faces disruption due to increasing tensions in the Middle East, a government source was quoted as saying by India Today. It was further added that the government is taking steps to protect Indian consumers from volatile crude oil and LPG prices. The central government is working closely with oil supplier companies and monitoring developments on a daily basis.

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The officials elaborated, saying that LPG prices in India are linked with the Saudi Contract Prices (SCP) benchmark, which has sharply gone up in the last two months. The Indian government has employed several measures to absorb volatility and cushion the burden on consumers.

Currently, the domestic LPG cylinder is sold for around 900, which costs over one thousand to oil marketing companies, said the official, asserting that priority is to protect the consumers from a sudden price hike.

Ujjwala Beneficiaries Take A Sigh Of Relief

While the price of a domestic cylinder has gone up by 60 rupees, and the commercial cylinder by 115 rupees, the beneficiaries of Pradhan Mantri Ujjwala Yojana will continue to get a subsidy of Rs 300 per cylinder. With the subsidy support, the effective rate of a cylinder for a low-income household will stand at Rs 613.

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Does India Have Enough LPG Stock

Government officials quoted in the report said that India has sufficient stock to meet domestic LPG demand and is currently in talks with global suppliers to increase imports to fulfil the additional requirements. An inter-ministerial group is monitoring the situation and reviewing supply priorities to ensure uninterrupted availability.

India Diversifies Oil Import Sources

India has reiterated that it will continue to buy oil from different sources as the tension in the Middle East does not seem to end soon. India’s energy import sources have gone up to 40 from 27 countries, helping India reduce disruption risks by diversifying supply routes.


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