India's steel ministry seeks intervention as mills face LPG shortage

India's steel ministry seeks intervention as mills face LPG shortage

India's Steel Ministry has sought the intervention of the Oil Ministry to address a critical shortage of liquefied petroleum gas (LPG) in steel plants.

The crisis is mainly due to disruptions in shipments from major Middle Eastern producers, triggered by the ongoing Iran war.

The shortage poses a serious threat to production and could have far-reaching consequences on jobs and future investments in India's steel sector.

Small steel producers warn of production halts

The LPG crisis has prompted warnings from India's small steel producers about possible production halts.

Vedant Goel, a director at Pune-based Enlight Metals, said that if the LPG situation continues, it would not only affect margins but also jobs and future investments in value-added steel.

He added that it could also impact confidence in long-term contracts both domestically and internationally.

Emergency measures invoked to address gas shortages

In response to the LPG crisis, India has invoked emergency measures and prioritized natural gas for essential sectors.

This comes after LNG shipments through the Strait of Hormuz were disrupted due to the ongoing conflict in the Middle East, further constraining domestic supply.

The Steel Ministry is still in talks with its Oil counterpart to find a solution within these existing conditions.