Rajya Sabha MP Kapil Sibal endorsed the government's move to prioritise domestic LPG for households amid Mideast tensions, calling it necessary but criticising the administration for a lack of long-term planning and foresight on import dependency.
Sibal on LPG Prioritisation and Geopolitical Tensions
Rajya Sabha MP Kapil Sibal on Wednesday acknowledged the government's decision to prioritise domestic LPG production for household use, calling it a necessary step to ensure benefits reach consumers directly. Speaking to ANI, the Rajya Sabha MP also asserted that a significant impact on Indian industries was inevitable due to the ongoing conflict between the USA, Israel, and Iran.
"These are consequences, this was bound to happen, the war will continue, it will go on for 2-4 weeks, it will be very difficult. Our industries, be it textiles, petrochemicals or our need for LPG, out of which 40 pc comes from Qatar, if this is closed, various sectors will be impacted, so the government did right in prioritising it should first go to the consumers (supply) then industries, essential commodities, these decisions are right," said Sibal.
Sibal also criticised the administration for a perceived lack of long-term planning and foresight regarding India's heavy import dependency and potential supply vulnerabilities in the face of geopolitical instability. "This was inevitable; they should have made the decision earlier [regarding the prioritisation of LPG for household use]. The long-term vision that was expected was not shown," added Sibal.
Commenting on the reported LPG shortages across the country, the Rajya Sabha MP noted that India relies on imports for fullfilling its 85-90% of its crude oil requirements. He cautioned that this heavy import dependency is likely to drive up inflation and create a challenging economic situation for the nation. "Whatever the situation is globally, if the navigation from the Strait of Hormuz doesn't happen, crude oil supplies will not arrive. Since India imports nearly 85-90% of its crude oil, it will naturally impact inflation, prices will rise, so India is in a difficult situation", added Sibal.
Commercial LPG Shortage Hits Businesses
Meanwhile, a commercial LPG shortage is affecting hotels and restaurants nationwide, with many forced to suspend operations. The government has formed a three-member committee to address grievances and prioritise domestic LPG supply. The Bangalore Hotels Association released a notice stating, "The supply of gas cylinders for commercial use has been stopped from today. Essential services like senior citizens, students, and hospitals rely on it. Immediate action is expected from Union Ministers to resume commercial gas supply."
In Madhya Pradesh, Bhopal witnessed a temporary halt in commercial LPG cylinder distribution. National Vice President of the LPG Association, RK Gupta, confirmed that commercial cylinders have not been issued since yesterday, except for hospitals and educational institutions. "The next booking will be allowed after a 25-day inter-booking period to avoid hoarding, and there is no shortage as claimed by oil companies," he said.
Government and Industry Respond
Additionally, Industry representatives emphasised that domestic LPG supply remains the top priority. Executive President of the All India LPG Distributors Federation, PN Seth, said, "There is no shortage, and supply of commercial and domestic cylinders is continuing as usual. Discussions are being held with distributors and stakeholders to ensure smooth supply."
Federation President Chandra Prakash added, "The govt, oil companies, and distributors are focused on domestic cylinders first; essential commercial services like hospitals are prioritised, but supply to restaurants has been temporarily halted."
This comes in the backdrop of escalating war in West Asia between Iran, Israel and the United States, which has spread to the Gulf countries. Due to reprioritisation, domestic LPG production has increased by 10 per cent in the last few days and consignment of LPG and LNG is coming from various sources. The sources said a new consignment of LPG/LNG is expected very soon.
"We were in crisis earlier, but today we are not in any crisis of petroleum products. Indian refineries are running at full capacity as they were operating before the Iran-Israel conflict," a source said. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)