‘Waiting for days’: India feels impact of gas supply chain disruption amid Iran conflict
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims + Mains·
Why in news
India is experiencing severe cooking gas shortages and price hikes due to the closure of the Strait of Hormuz amid the Iran conflict.
Background
The closure of the Strait of Hormuz has disrupted the LPG supply chain, leading to business closures in the restaurant and tile manufacturing sectors. While India has strategic crude reserves, it lacks equivalent buffers for LPG, leading to increased theft of LPG trucks and a surge in demand for electric cooking appliances.
Facts for Prelims
- FactStrait of Hormuz: A critical maritime chokepoint for global energy supply.
- FactLPG: Liquefied Petroleum Gas, currently facing supply chain disruptions in India.
- FactStrategic Crude Reserves: India maintains these but lacks equivalent buffers for LPG.
For Mains
Q. Examine the vulnerabilities in India's energy security and suggest measures to diversify the supply chain for critical resources like LPG.
Dimensions to cover in your answer
- Supply chain vulnerability: High dependence on specific maritime chokepoints for energy imports
- Buffer inadequacy: Lack of strategic LPG reserves compared to crude oil
- Economic ripple effect: Impact of energy price volatility on MSMEs and food security
Keywords: Energy Security · Supply Chain Resilience · Strategic Reserves · Maritime Chokepoints · Economic Vulnerability
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