Amid West Asia crisis, cooking gas prices raised, Pg1

Key Highlights:

• Domestic cooking gas prices increased by ₹60 per cylinder, while commercial cylinders rose by ₹114.50 on Saturday.
• Pradhan Mantri Ujjwala Yojana beneficiaries will now pay ₹613 for a 14.2-kg cylinder after accounting for the ₹300 subsidy.
• The price increase is attributed to a sharp rise in global prices due to conflict in West Asia disrupting tanker movement through the Strait of Hormuz.
• Non-subsidised LPG will now cost ₹913 per 14.2-kg cylinder in Delhi, up from ₹853 earlier.

Detailed Insights:

• The Strait of Hormuz is a crucial route for Gulf producers exporting oil and gas, and disruptions there significantly impact global energy prices.
• Opposition parties criticize the Centre for burdening households with rising prices, alleging that the benefits of earlier declines in global crude prices were not passed on to citizens.
• The latest increase brings the price of commercial cylinders in Delhi to ₹1,883, with a cumulative rise of ₹302.50 this year.
• Despite the LPG price hike, government sources indicate that there will be no immediate increase in petrol or diesel prices, as oil marketing companies can absorb fluctuations due to strong profits.
• India relies heavily on imports through the Strait of Hormuz, with nearly half of its crude oil imports and about 40% of its natural gas shipments passing through this waterway.
• The government has invoked emergency powers to direct domestic oil refineries to increase LPG production to augment supplies amid concerns over supply disruptions.
  
  
  

  StraitOfHormuz.jpg

  
  
   

Key Concepts Involved:

• Pradhan Mantri Ujjwala Yojana: A government scheme providing LPG connections to households below the poverty line.
• Strait of Hormuz: A narrow waterway between Oman and Iran, crucial for global oil and gas transportation.
• LPG (Liquefied Petroleum Gas): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.