<p>Disruptions in energy supplies and market volatility have signalled the first real impact of the Gulf war on India. Brent crude went above the $100-per-barrel mark last week. It softened later and is hovering around $90, but can top $100 any time. Continuing attacks on Iran, Tehran’s retaliatory strikes on oil installations in the Gulf, the choke at the Strait of Hormuz, and statements by leaders, especially United States President Donald Trump, are extending the uncertainty. </p><p>Oil and gas flow across the world has been disrupted. About a fifth of global LNG supplies moves through the Strait of Hormuz. India sources about 80% of its energy supplies from the world market. It imports half of its natural gas and over 60% of its LPG requirements from the Gulf region.</p>.LPG shortage | From Rs 60 hike to booking period extension: All you need to know about your cylinder supply amid West Asia crisis.<p>Amid risks of a supply crunch, the Union government assured that there would be no shortage. States such as Karnataka and Maharashtra have started experiencing an acute shortage of commercial LPG. Many hotels, restaurants, and roadside eateries have either suspended or curtailed operations. The livelihoods of many people, including caterers, workers, vendors, and delivery staff, are affected. </p><p>An extended crisis may severely impact the hospitality industry. The government has already raised LPG prices, while panic is triggering overbooking and delivery delays. The price of automobile fuels may not be increased when elections are due in multiple states, but there will be a spurt in imported inflation.</p>.<p>In response, the government has turned to new import sources and prioritised the production of LPG, the supply of piped natural gas for households, and CNG for transport. Fertiliser units are next in line and will receive 70% of their normal supplies, based on availability. These are followed by tea industries, manufacturing units, and other industrial consumers. </p><p>The government has directed refineries to increase gas production and has set up an oversight committee to monitor the situation. By making it clear that the highest priority is meeting household energy needs, the government has tried to ensure that most people are insulated from the fallout, at least for now. The shortage of LPG, an essential commodity in most homes, will also have a political impact. </p><p>By invoking the Essential Commodities Act, the government has made a statement of urgency. The scarcity in supplies may continue until the conflict eases. Without de-escalation, measures to address the supply bottlenecks will have limited impact. In this context, economical use will truly complement the increased production and damage control efforts.</p>
<p>Disruptions in energy supplies and market volatility have signalled the first real impact of the Gulf war on India. Brent crude went above the $100-per-barrel mark last week. It softened later and is hovering around $90, but can top $100 any time. Continuing attacks on Iran, Tehran’s retaliatory strikes on oil installations in the Gulf, the choke at the Strait of Hormuz, and statements by leaders, especially United States President Donald Trump, are extending the uncertainty. </p><p>Oil and gas flow across the world has been disrupted. About a fifth of global LNG supplies moves through the Strait of Hormuz. India sources about 80% of its energy supplies from the world market. It imports half of its natural gas and over 60% of its LPG requirements from the Gulf region.</p>.LPG shortage | From Rs 60 hike to booking period extension: All you need to know about your cylinder supply amid West Asia crisis.<p>Amid risks of a supply crunch, the Union government assured that there would be no shortage. States such as Karnataka and Maharashtra have started experiencing an acute shortage of commercial LPG. Many hotels, restaurants, and roadside eateries have either suspended or curtailed operations. The livelihoods of many people, including caterers, workers, vendors, and delivery staff, are affected. </p><p>An extended crisis may severely impact the hospitality industry. The government has already raised LPG prices, while panic is triggering overbooking and delivery delays. The price of automobile fuels may not be increased when elections are due in multiple states, but there will be a spurt in imported inflation.</p>.<p>In response, the government has turned to new import sources and prioritised the production of LPG, the supply of piped natural gas for households, and CNG for transport. Fertiliser units are next in line and will receive 70% of their normal supplies, based on availability. These are followed by tea industries, manufacturing units, and other industrial consumers. </p><p>The government has directed refineries to increase gas production and has set up an oversight committee to monitor the situation. By making it clear that the highest priority is meeting household energy needs, the government has tried to ensure that most people are insulated from the fallout, at least for now. The shortage of LPG, an essential commodity in most homes, will also have a political impact. </p><p>By invoking the Essential Commodities Act, the government has made a statement of urgency. The scarcity in supplies may continue until the conflict eases. Without de-escalation, measures to address the supply bottlenecks will have limited impact. In this context, economical use will truly complement the increased production and damage control efforts.</p>
