At the 11th hour: Govt scrambling to deal with LPG crisis as Iran war worsens

With the conflict in the Middle East escalating and global energy supplies and production facing disruptions, the government on Tuesday announced several measures to deal with the looming LPG crisis, invoking emergency provisions under the Essential Commodities Act (ECA) and urging consumers to complete Aadhaar-based biometric authentication (e-KYC) to ensure uninterrupted availability of cooking gas.

The measures were taken amid intensifying Middle East conflict triggered by the US and Israeli strikes on Iran and the latter’s retaliation. The conflict has disrupted shipping through the Strait of Hormuz, a key route for global oil and gas supplies.

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India, which imports about 85 per cent of its crude and nearly half of its natural gas, is vulnerable to such disruptions.

As the government scrambles to manage the energy crisis, LPG shortage has raised concerns among hotels and restaurants and other industries across major cities.

Industry bodies have warned that if the situation does not improve in the next two days, about half of the hotels and restaurants could be forced to shut operations temporarily.

Govt prioritising domestic consumers

Amid the looming crisis, Petroleum and Natural Gas Minister Hardeep Singh Puri said the government has taken steps to safeguard domestic fuel supplies despite the global disruptions caused by the war.

“In today’s informal interaction with members of the media fraternity, we discussed that India’s energy imports are continuing to flow in from different sources and routes,” Puri said.

He added that the government has ensured 100 per cent supply of CNG and PNG to domestic consumers, while other industries continue to receive around 70–80 per cent of their gas supplies.

“We are committed to ensure uninterrupted supply of affordable energy to our domestic consumers. There is no shortage for domestic consumers and no reason to panic,” the minister added.

New bookings for commercial LPG cylinders halted

The crisis has led to a shortage of commercial LPG in the country. In Rajasthan, oil marketing companies have directed distributors to halt new bookings for commercial LPG cylinders.

The supply of commercial LPG has also been disrupted in Karnataka, where several hotels, restaurants, and roadside food vendors are on the verge of shutting down their operations.

Karnataka CM Siddaramaiah has written to Union Petroleum Minister Hardeep Singh Puri, requesting his intervention to ensure adequate commercial LPG supply is made available to hotels, restaurants and commercial establishments and to give directions to the Oil Marketing Companies to address the current supply constraints.

50 per cent hotels on the verge of shutting down operations

The Hotel and Restaurant Association has raised the alarm, claiming that the shortage of commercial LPG could force around 50 per cent of hotels and restaurants across several cities to shut their operations in two days.

“The shortage of commercial LPG has become extremely serious over the past week, with intermittent disruptions escalating into a near-complete halt in supply in several regions since yesterday,” said Pradeep Shetty, VP, FHRAI & Spokesperson, Hotel and Restaurant Association (Western India).

The shortage, Shetty said, will affect international tourists who are already here and those who will be visiting the country. “Also, smaller and medium-sized eateries will be the first to be impacted, as they typically operate with limited reserves.”

LPG consumers asked to complete Aadhaar authentication

In a bid to curb the hoarding and black marketing, the government has stepped up Aadhaar-based biometric authentication for LPG consumers under the Pradhan Mantri Ujjwala Yojana (PMUY).

According to the Petroleum Ministry, consumers can now complete Aadhaar authentication and e-KYC without visiting LPG distributors.

Users can simply scan the QR code shared by the ministry or visit the link pmuy.gov.in/e-kyc.html to complete e-KYC process.

The consumers, however, would continue to get their LPG cylinders refilled even if their Aadhaar authentication is incomplete.