When US and Israel attacked Iran on February 28, not many could have guessed that the war would stretch beyond 10 days. The killing of Iran’s supreme leader Ayatollah Khamenei, intensified a dangerous war in the Gulf region.
The whole of the Middle East is currently in a state of war with Israel and the USA hitting Iran across the length and breadth of the country. While in an act of retaliation, Iran is sending missiles and drones to Gulf countries, targeting both commercial centres and US bases in these countries.
The war may be confined to just three countries, but its impact is being felt across the world. In a strategic move to tighten its grip on the conflict, Iran has blocked the crucial Strait of Hormuz, which is the main exit route for oil and gas exports from Gulf producers such as Saudi Arabia, Kuwait, Iran, Iraq, Qatar and the United Arab Emirates (UAE).
India too is affected by the closure of the Strait of Hormuz. The country imports roughly 88 per cent of its crude oil, 50 percent of its LNG needs and 60 percent of its LPG requirement, most of which transits through the strait.
What is important to note is that India is not as concerned about crude oil at the moment as it is about LPG supplies. The reason is that while enough crude oil is available from alternative sources, such as Russia, replacing any loss of LPG supplies is more time-consuming, as other alternative sources are largely located in the United States and Canada.
As a result, oil companies are prioritising household gas supplies, while commercial users are facing restrictions on deliveries. To meet the demand for LPG, the government has taken several key measures, including the allocation of an additional 48,000 kilolitres of kerosene to states on top of the regular monthly allocation of about 1 lakh kilolitres to support household cooking needs.
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Environmental regulators have also been directed to allow hotels and restaurants to use alternative fuels such as biomass, refuse-derived fuel (RDF) pellets and coal for one month. Oil marketing companies will supply only 20 per cent of the average monthly commercial LPG demand to ensure essential businesses continue receiving fuel. Additionally, the minimum LPG refill interval has been increased to 25 days in urban areas and 45 days in rural areas.
Kerosene and coal make a comeback
At COP26, India committed to achieving net-zero carbon emissions by 2070. The government has taken various measures to achieve this, including phasing out the use of kerosene and coal in Indian households. In fact, India’s mass roll-out of LPG through the grant of free connections to the poor under the Pradhan Mantri Ujjwala Yojana was intended to reduce the use of firewood and coal for cooking, especially in rural households.
However, at a time when LPG supplies are under pressure due to the war, the government has temporarily reintroduced kerosene supply to ensure households have an alternative fuel for cooking.
“It’s a difficult situation. But government is making all efforts to ensure that the supply to domestic consumers is maintained. On the distribution side, no dry retail outlet has been reported but there is a manifold increase in bookings because of the panic. We urge citizens to avoid panic booking and all efforts have to be made to conserve fuel wherever possible,” said Sujata Sharma, joint secretary, ministry of petroleum and natural gas.
While domestic LPG production has been increased by 28 percent by diverting more refinery output toward cooking gas, it is also important to provide people with an alternative option.
(With inputs from PTI)
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