US Hormuz Blockade: Will India's Crude Oil And LPG Supply Be Hit?

New Delhi: Peace talks between Iran and the United States in Pakistan failed. Following this, the US President ordered a blockade of the Strait of Hormuz and Iran also responded with a threatening tone. If this tension escalates, it will have a significant impact on countries like India. Now the question arises whether the price of LPG, petrol, and diesel increase in future?

Is the pressure increasing on the government?

India imports crude oil and gas from other countries. Of that, LPG is primarily imported from Gulf countries. Since the war began, India has been able to bring some of its LPG tankers through the Strait of Hormuz. However, if the US blockade intensifies, India's difficulties will increase, putting pressure on the central government.

Is the rate of commercial LPG cylinder increasing?

On April 1, the price of a 19 kg commercial LPG cylinder has been increased to Rs 2,078.50, marking a rise of Rs 195.50 in Delhi. The price of a small 5-kilogram LPG cylinder was also increased by Rs 51. It's worth noting that the price of domestic LPG cylinders was also increased on March 7, with a Rs 60 increase in Delhi. However, there was no further increase in LPG cylinder prices after that.

What about petrol and diesel?

Before the war began, crude oil prices had reached close to $70 per barrel. But now they are close to $100 per barrel. The increase in crude oil prices has increased pressure on oil marketing companies. Recently, the government provided relief by reducing the excise duty on petrol and diesel by Rs 10 each. Nayara and Shell India have already increased the prices of petrol and diesel. 

US-Iran Second Round Talk?

Following the failure of the first round of talks, the second round of talks between the US and Iran is expected to take place on April 16. Reports indicate that both countries have agreed to hold talks. However, no clarity has yet emerged regarding the specifics of this meeting.