Tensions between Iran and the US have not subsided. The Strait of Hormuz has now become the center of this conflict. Consequently, it has become difficult to remove ships carrying oil and gas from the Strait of Hormuz. Therefore, once again, the public is experiencing the crisis of a shortage of domestic gas cylinders. The last time there was a shortage of gas cylinders, lines formed outside gas warehouses and agencies. Now, the same situation is likely to arise again. This is a review of the situation in India compared to the rest of the world.

As far as India is concerned, this crisis is less severe. Before the war, 90% of India's LPG gas imports came from the Strait of Hormuz. However, this dependence has now decreased significantly. LPG is also coming to India from many other countries, including the United States. Therefore, India is no longer completely dependent on the Strait of Hormuz. Therefore, even though wars have broken out between the United States and Iran from time to time, they have not had much impact on India.

How much LPG comes to India?
India currently produces 37,000-38,000 metric tons of LPG per day. Refineries in the country are now targeting 4,000 metric tons per day, an increase of more than 10%. According to an Economic Times source, this stock is currently performing well. Supplies are coming through the Strait of Hormuz, but this route cannot be relied upon too much. If this route were to close for even a week, it could cause a mountain of problems.

Imports reduced
India has taken a big decision after the war. India has drastically reduced the import of LPG and has put more emphasis on domestic production. According to the data of the Ministry of Petroleum, LPG gas consumption in August has declined by an average of 17% on yearly basis. Households, commercial users and industries, all were affected. Bulk LPG (LPG) consumption among industries saw the biggest decline, falling by almost 80% in July.

Attacks escalated and...
The US and Iran have attacked each other's ships in recent days. As these attacks continued, there were some signs of normalization of communications across the Strait of Hormuz. This waterway is crucial. Before the war, 20 percent of the world's crude oil and gas supplies passed through it. US President Donald Trump indicated on Wednesday that oil prices would continue to rise until the US midterm elections.

Both consumption and imports
of LPG have declined in India since the Iran war began. Imports fell 25% to 1.45 million tonnes in August, the highest monthly figure during the war.

PC: The print