Hormuz Strait Crisis: Will gas cylinder be cheaper in India? Hopes for the opening of Hormuz Strait rises
New Delhi: The Strait of Hormuz has once again become the focus of discussion amid long-standing tensions in the global energy market. This sea route is one of the most important oil and gas transportation routes in the world. Tensions between the US and Iran and the subsequent maritime blockade have affected the energy supply of many countries. India has not been spared from this as the country fulfills its major LPG needs from the Gulf countries.
Control over the Strait of Hormuz has affected the global energy market
After the escalating dispute between Iran and the US, the Strait of Hormuz was also affected, which led to a rise in the prices of gas and energy products in the international market. This sea route is considered to be the main mode of transportation of the bulk of oil and gas from the Gulf countries. Because of this, any disruption that occurs here has a direct impact on the global markets.
A major part of India's energy supply depends on this route
India imports more than 60 percent of its LPG requirements from countries like Qatar, Saudi Arabia and the United Arab Emirates. Most of the gas from these countries reaches Indian ports through the Strait of Hormuz. In this case, if this route becomes completely normal, then the problems in gas supply can be removed to a large extent.
If the supply is normal, the prices in the international market may be affected
Experts believe that if stability returns to the region and maritime transport resumes without any disruption, pressure on global LPG prices may ease. Increasing availability of crude fuels like propane and butane will also help refineries and strengthen supply chains.
It is not easy to meet domestic gas cylinder prices immediately
However, despite the softening in international prices, there is little chance of an immediate reduction in domestic cooking gas prices. Oil marketing companies have been suffering from additional financial pressure for a long time due to the global economic slowdown in the past months. In this case, it may take some time for domestic consumers to settle down.
Commercial cylinder consumers may get relief
According to experts, if gas prices come down in the global market, the first effect will be seen on commercial LPG cylinders. The prices of cylinders used in hotels, restaurants and commercial establishments are expected to be reduced by Rs 200 to Rs 400. This helps reduce the cost of business activities.