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News India Live, Digital Desk: The world’s largest oil and gas producing company Saudi Aramco has dealt a major blow to the global energy market. The company has said in its official announcement that it will LPG delivery suspended for the month of May Still working. This decision has come at a time when many countries of the world are already struggling with energy crisis and rising prices. Due to this move of Aramco, there is a possibility of a huge rise in the prices of LPG in the coming days.
What is the real reason for stopping the supply?
According to Saudi Aramco, this decision was not due to any political or strategic reason, but technical fault Taken due to:
Facility Damage: There have been reports of technical glitches and damage to infrastructure at one of the company’s major gas processing plants.
Maintenance work: The damage is said to be so serious that it will take time to repair it and check safety standards, due to which the slots for the month of May have been cancelled.
What will be the impact on the global market and India?
Saudi Arabia is one of the world’s leading LPG exporters. This decision of Aramco will have a direct impact on the Asian and European markets:
Price rise: Due to reduced supply and intact demand, ‘panic buying’ may start increasing in LPG prices in the international market.
Situation in India: India imports a major part of its LPG requirements from Saudi Arabia. Although India has adequate buffer stocks and alternative supply routes from other countries (such as Qatar and UAE), the rise in global prices is being offset by domestic demand. Non subsidized cylinder prices Can increase.
Will the kitchen budget deteriorate?
At present, Indian oil companies (IOCL, BPCL, HPCL) have not given any official statement on this. But experts believe that if this problem of Aramco continues for a long time, it will have a deep impact on the bookings and prices for the month of June. Shortage of LPG for heating and industrial purposes can be felt even in developed countries.
Preparations of government and oil companies
The Indian Petroleum Ministry is monitoring the situation. It is believed that India may demand additional cargo from other Gulf countries so that there is no shortage of gas in the domestic market.