Domestic LPG cylinder rates remain flat due to the steady developments in the West Asia conflicts, where President Trump said that it's unlikely that the US would continue the ceasefire with Iran.
Last week, Trump said that if they ship entering or leaving the Strait of Hormuz, it will become a target. There is an easing in geopolitical tensions and the domestic cylinder prices are flat, but commercial LPG rates have increased due to an increase in crude oil prices and the West Asia crisis.
Are Non-Iranian Ships Allowed To Pass the Strait of Hormuz?
There can be checks or an increased military presence for non-Iranian ships. One fifth of the global gas exports move through the Strait of Hormuz, India imports 60 percent of the LPG supply, and 90 percent of ships move through the Strait of Hormuz route. The central government has maintained the LPG supply and advises consumers to avoid panic LPG cylinder booking.
Commercial VS Domestic LPG Cylinders
14.2 Kg cylinders are used in Indian households, and 19 kg cylinders are used for commercial purposes. Commercial LPG cylinders are priced higher compared to domestic cylinders. Due to major ongoing tensions in West Asia, LPG cylinder rates have increased twice. In March, commercial LPG prices increased to Rs 144 and were revised to nearly Rs 200 in April.
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