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India Faces LPG Supply Crisis Amid Iran-Israel Conflict

India is grappling with a severe LPG supply crisis triggered by the ongoing conflict between Iran and Israel, resulting in significant delays and shortages of domestic gas cylinders. As panic buying escalates, the demand for induction cooktops has surged dramatically, leading to stock shortages both online and in stores. Companies are struggling to meet the unprecedented demand due to reliance on imported components. Experts advise consumers to remain calm, assuring that domestic supply is secure, while also suggesting alternatives like traditional gas stoves. This situation underscores the vulnerability of the global oil and gas market to geopolitical tensions.
 

Impact of the Iran-Israel Conflict on LPG Supply


The ongoing conflict between Iran and Israel has led to significant disruptions in the Strait of Hormuz, causing a severe crisis in the supply of LPG cylinders in India. Reports indicate that many cities are experiencing shortages of domestic gas cylinders, with booking delays extending up to 20-25 days, which has triggered panic among consumers. Consequently, there has been an unprecedented surge in demand for induction cooktops, with increases of 400 to 500% reported in some areas. However, these induction cooktops are also becoming scarce, with online platforms showing 'out of stock' notices and long queues forming at retail outlets.


According to various media reports, sales of induction cookers have skyrocketed by 400-500% in recent days. Previously, sales ranged from 1,000 to 2,000 units per month, but now they are reaching daily sales of 100,000 to 200,000 units. Demand on quick commerce apps like Blinkit and Zepto, as well as e-commerce platforms such as Amazon and Flipkart, has surged by 10 to 30 times. Major cities like Delhi-NCR, Mumbai, Bengaluru, Chennai, Lucknow, and Jaipur are reporting depleted stocks both in stores and online. Consumers are expressing frustration, saying, 'Our gas is running out, and we can't find induction cooktops—what should we do?'


Companies like Pigeon (Stovekraft), Prestige (TTK Prestige), and Butterfly are also feeling the pressure. Rajendra Gandhi, MD of Stovekraft, noted that their weekly sales on e-commerce platforms have quadrupled, while TTK Prestige reported demand has increased 'more than threefold.' However, they are facing challenges in ramping up production due to reliance on imported components such as coils, electronic circuits, and magnetic cores, primarily sourced from China.


Market analysts suggest that it will take at least 45 days for new raw materials to arrive from China. The supply chain has been disrupted due to shipping delays, logistics issues stemming from the Hormuz crisis, and high demand. Companies are operating at full production capacity and increasing their workforce, yet customers are still facing shortages. In some locations, the prices of induction cooktops have risen by 20-30%, and reports of black marketing are emerging.


The government has activated emergency measures to instruct refineries to boost domestic LPG supply, but the impact on commercial cylinders (used in hotels, restaurants, and canteens) is more pronounced. Panic buying among consumers is exacerbating the situation. Experts advise against panic, assuring that the government has secured domestic supply, and suggest that induction cooktops are a viable backup option. For those unable to find induction cooktops, traditional gas stoves or areas with PNG (piped natural gas) may offer some relief.


This crisis highlights the global oil and gas market's vulnerability to geopolitical conflicts like the one in Iran. If the situation persists, demand for induction and electric appliances may continue to rise, but consumers should expect a waiting period of 45 days for supply. Complaints about stock shortages are also surfacing in local markets in cities like Jaipur, where residents are seen searching for solutions since morning.