Repercussions of Strait of Hormuz stalemate: Massive restrictions on LPG bookings in India

NEW DELHI: Restrictions are in place on LPG bookings in the country. Domestic cylinder bookings will be limited to once every 25 days. This is due to increased bookings following the conflict in the Middle East. Restrictions have also been imposed on commercial cylinder supply. Reports suggest that this may affect the operations of hotels and canteens.

The price of a cooking gas cylinder has been increased by Rs 60 and that of a commercial cylinder by Rs 115. In Kochi, the price of a domestic cylinder is Rs 920. The price of commercial cylinders has increased by Rs 302.5 this year.

There have been signs in the past few days that the escalating Iran conflict could affect Indian households. Analysts warned that if tanker traffic through the Strait of Hormuz is significantly disrupted, households will face severe difficulties in supplying cooking gas. A large part of India's fuel imports passes through the Strait of Hormuz. Any further restrictions by Iran would create a serious crisis.

Government sources say that the existing LPG stocks will last for about 30 more days. Officials say that if the scheduled deliveries in March are delayed, these reserves will be depleted quickly if households start booking refills in fear of falling short.