Fuel Shock Incoming? LPG Price Hike Expected, Petrol-Diesel Also on Radar

New Delhi (The Uttam Hindu): The Iran-Israel war is sure to have an impact on the whole world. If the war drags on, changes can be seen in the prices of petrol, diesel and LPG cylinders. America's attacks on Iran's nuclear sites have raised the fear of supply disruption from the world's largest oil producing region, West Asia. In 10 years, the use of LPG in India has more than doubled, now LPG is reaching 33 crore homes. India imports about 66 percent of its LPG needs, out of which 95 percent of the gas comes from West Asian countries like Saudi Arabia, Qatar and UAE. In such a situation, if the supply is disrupted in this region, then it is almost certain that prices in the domestic market will increase.

According to the data of the Ministry of Petroleum and Natural Gas, the capacity to store LPG that India has in import terminals, refineries and bottling plants is sufficient for only about 16 days of the national average consumption. The country's situation is much better in the case of petrol and diesel. India is a net exporter of both. It exports about 40 percent of its domestic petrol consumption and about 30 percent of diesel consumption. If needed, these export quantities can be easily diverted to the domestic market. On the one hand, oil prices have gone up, while the Indian rupee and the stock market have crashed. In fact, the rupee fell by 17 paise to 86.72 per dollar in early trade on Monday amid a surge in crude oil prices globally after the US attacked nuclear sites in Iran.

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