Two Indian LPG carriers, loaded with around 92,700 metric tonnes of Liquefied Petroleum Gas (LPG), have transited the Strait of Hormuz and are now headed towards Gujarat ports. This has brought relief to India’s cooking gas supply chain. These ships—Shivalik and Nanda Devi—crossed the Strait of Hormuz late Thursday night and early Friday. They are expected to reach Mundra and Kandla ports on March 16 and March 17 respectively. Giving information about this development, Special Secretary of Shipping Ministry, Rajesh Kumar Sinha said that they have safely crossed the Strait of Hormuz and are now moving towards India. These ships are loaded with approximately 92,700 metric tons of LPG. Their ports of call will be Mundra and Kandla, and their probable dates of arrival are March 16 and March 17 respectively.
22 ships are still stranded
Sinha said that out of the 24 Indian ships already present west of the Strait of Hormuz, two have now crossed, leaving 22 ships in the Persian Gulf with 611 sailors on board. Officials said that these include six LPG carriers, one LNG tanker, four crude oil tankers, one chemical products tanker, three container ships and two bulk carriers. In all, 28 Indian-flagged ships were affected, four of which were in the eastern part of the Strait of Hormuz. An Indian tanker, ‘Jag Prakash’, had already crossed. ‘Jag Prakash’ was loaded with gasoline from Sohar port in Oman and was headed towards Tanga in Tanzania. It is expected to reach Tanga on March 21.
More than 20 million barrels of crude oil passes through the Strait of Hormuz every day—about a fifth of global oil consumption and almost a quarter of seaborne oil trade—and a large portion of global LNG also passes through it. For India, this disruption has had the biggest impact on the supply of LPG. The country imports 60 percent of its LPG needs, and 85-90 percent of this comes from suppliers in the Gulf countries who use Hormuz as a transit route.
facing crisis
Sujata Sharma, Joint Secretary (Marketing and Oil Refinery) in the Petroleum Ministry said that there has been a huge jump in the booking of LPG refills due to panic buying. He said that yesterday the number of bookings was around 75 lakh, and now it has increased to around 88 lakh. This is nothing but booking done in panic. Before the conflict began, there were about 55 lakh bookings daily, while oil marketing companies were delivering about 50 lakh cylinders daily. Sharma said that priority is being given to domestic consumers.
He said that this situation is a matter of concern for all of us, but we are ensuring that domestic consumers do not face any kind of inconvenience. Domestic consumers have been given priority, and supply of LPG cylinders is being ensured for them. He also clarified the booking rules after complaints that cylinders were not being booked. He said that in urban areas, there should be a mandatory gap of at least 25 days between the previous delivery and the next booking, and in rural areas this gap is 45 days. If you try to book the cylinder before this period is over, the booking will not be possible… There is no need to panic at all.
Increase in domestic production
To reduce the pressure, the government has increased domestic production. Sharma said that on the first day we told you about 10 percent increase in domestic production, then 25 percent, then 28 percent, and today this increase has reached 31 percent. The government has also taken steps in the commercial sector, where hotels, restaurants and other establishments have been affected due to supply tension. He said that it has been decided to allocate a certain quantity of LPG for commercial cylinders also… These commercial cylinders have been given to the state governments so that they can give priority to the consumers. In this regard, distribution of commercial cylinders has already started in about 29 states and union territories, and they have also reached the consumers.
Adequate stock of fertilizer
The government has also taken steps towards ensuring additional gas supply to promote fertilizer production. External Affairs Ministry spokesperson Randhir Jaiswal said that fertilizer production has already issued global tenders in anticipation of supply disruptions and will purchase spot gas on a competitive basis; The first phase of procurement is expected to start soon. He said India currently has “more than adequate stock of fertilizers; Urea stock is higher than last year, DAP stock is almost double and NPK stock is also very high. He also said that domestic production has been increased to the maximum level as plant maintenance schedules have already been completed.
Iran positive about India
Iran has also indicated to allow Indian ships to pass through its waterways. When Abdul Majeed Hakim Elahi, the representative of Iran’s supreme leader in India, was asked whether Indian ships would be allowed to pass through the strait, he said, of course, yes. Meanwhile, Iran’s Foreign Minister Abbas Araghchi said the US, which was earlier “pressuring India to stop importing Russian oil,” is now pleading with India to buy crude oil from Moscow, two weeks after the war with Iran broke out. Araghchi said in a post on social media platform He further said that after two weeks of war with Iran, the White House is now requesting people from all over the world including India to buy Russian crude oil.