The effect of US-Iran tension that has been going on for about 10 days is now visible in India too. Recently, oil companies have increased the prices of LPG cylinders. Domestic cylinder has become costlier by Rs 60, while the price of commercial gas cylinder has increased by Rs 115. The matter of concern is that the impact of this crisis is not limited to the prices of gas cylinders only. Its effect is visible from industries to cremation grounds.
Let us understand how the increasing tension in West Asia is affecting India and how deep the crisis can become if the situation continues for a long time.
Effect of war on gas imports
The increasing tension in West Asia has increased the pressure on the supply and use of fuel gas in India. A major reason for this is that India imports about 60% of its gas requirement from abroad. A large part of them comes from Gulf countries. Gas is brought to India by sea route through big tanker ships. But due to increasing tension in the Strait of Hormuz since March 1, gas supply has been affected. This sea route is considered one of the most important energy transportation routes in the world.
Fuel gases and their uses
Fuel gas means gases which are used as fuel. There are many varieties of them, like LPG, LNG, CNG and PNG. These gases are used in domestic kitchens, industries, vehicles, power generation and piped gas supply in cities. Some of these gases are found as by-products during refining of crude oil, while some gases are extracted from the ground in the form of natural gas. These gases are produced in India, but a large part of the requirement is dependent on imports.
Effect started visible in India
1. 100 factories closed in Gujarat
The effect of affected gas supply is now visible on industries also. Due to interruption in fuel supply in Morbi, Gujarat, about 100 factories have had to stop their production. All these units are related to ceramic industry. Morbi is known as a major center of tile and clock manufacturing and is one of the largest ceramic manufacturing hubs in the world. Representatives associated with the industry say that if the gas supply does not become normal soon, there is a danger of closure of about 400 more units in the coming days.
2. Gas based crematorium affected in Pune
Due to shortage of gas in Pune, Maharashtra, the Municipal Corporation has decided to temporarily close 18 gas-based crematoriums. The Municipal Corporation says that as soon as the gas supply becomes normal, these cremation grounds will be restarted. At present the administration is keeping an eye on the situation.
3. Demand for induction cooker increased three times
The effect of increase in the price of LPG in Kolkata and uncertainty regarding future supply is becoming visible in the market. Sales of electric kitchen appliances, such as induction cookers, have increased three times in the city’s retail markets, especially Chandni Market and Ezra Street. According to shopkeepers, this surge in sales started when the central government announced the increase in the prices of cooking gas.
4. LPG expensive
Oil companies have increased the price of domestic LPG cylinder by Rs 60. After this, the price of 14.2 kg LPG cylinder in Delhi has become approximately Rs 913. At the same time, an increase of Rs 115 has been recorded in the price of 19 kg commercial gas cylinder. However, the government has ordered oil companies not to let the supply of LPG be affected.
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