Gulf Conflict Fuels India LPG Shortage, Prices Surge

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AuthorRiya Kapoor|Published at:
Gulf Conflict Fuels India LPG Shortage, Prices Surge
Overview

A conflict in the Persian Gulf has triggered severe Liquefied Petroleum Gas (LPG) shortages across India. Street food vendors are being forced to switch to costly kerosene or wood, as LPG cylinders become scarce and unaffordable. This energy crunch is directly translating to higher food prices for consumers and reduced sales for small businesses, with many stalls closing down.

Urban India Feels the Fuel Pinch

The Middle East conflict's impact is hitting urban India hard, especially those on lower incomes. Food stall operators, long reliant on affordable LPG, now face a stark choice. Satyapal, a vendor near New Delhi’s Kashmiri Gate station, has switched to kerosene. The fuel now costs him nearly ten times more to operate his basic stove, forcing him to continue his trade. His daily sales have halved as fewer customers visit, and the cost of a simple meal has risen 25%.

Families and Businesses Face Hard Choices

Households face similar strain. Satyapal's eight-member family is struggling as LPG cylinder prices have quadrupled above the subsidized rate. They are now supplementing with a makeshift firewood oven. Restaurants and caterers are also affected. They are trimming menus, cutting popular fried dishes, and seeing vegetable oil use drop. Raju Bhandari, who runs an informal restaurant, has shifted his kitchen from LPG to coal and wood. He noted the switch makes even cleaning more difficult. These increased costs are passed to consumers, disproportionately hitting low-income workers like Dharam Pal, a porter, whose earnings are already squeezed by higher food prices.

Government Steps In Amid Geopolitical Uncertainty

The government has invoked emergency powers to boost local LPG production and is speeding up the rollout of piped natural gas connections, adding 10,000 new consumers daily. Officials have conducted over 3,000 raids to combat LPG hoarding and black market sales. While the oil ministry assures the situation is stabilizing and commercial supplies will resume with increased domestic production, geopolitical uncertainty persists. Sujata Sharma, a joint secretary at India’s oil ministry, noted that the ongoing war situation complicates immediate relief efforts.

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