Liquor prices in Telangana are expected to rise sharply as the ongoing war in West Asia continues to disrupt supply chains and production costs. Companies have requested a price increase of between 12% and 15% to cope with these challenges.

The conflict, particularly the tensions between Iran and Israel, has severely impacted the production of glass bottles, a critical component in the liquor industry. Reports indicate that production in major glass manufacturing centers across the country has dropped by nearly 40%, leading to a significant 20% increase in the price of empty bottles.

Distillery managements have expressed that a price hike is inevitable, especially with the liquor price review deadline in the state having passed without any adjustments since May 2023. This delay in review has left many companies grappling with rising costs and dwindling supplies.

Furthermore, disruptions in natural gas supply due to the ongoing conflict have compounded the issues faced by liquor bottle manufacturing units, making it increasingly difficult to maintain production levels.

Beer prices are also expected to see a rise, driven by high demand during the summer months and a reported 20% reduction in supply. This dual pressure on both liquor and beer prices is likely to affect consumers significantly in the coming weeks.

A judicial committee has been formed to review the price hike issue, led by a retired judge, indicating that the government is taking steps to address the situation. However, the outcome of this review remains uncertain.

As the situation evolves, observers are closely monitoring the developments, particularly the potential for further disruptions in the supply chain and any additional requests for price increases from distilleries.

Details remain unconfirmed regarding the exact timeline for the price adjustments, but the brewing crisis in the liquor industry is becoming increasingly apparent.

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The Indian oil gas booking system, particularly Indane’s LPG refill service, has faced a major disruption due to an unprecedented surge in customer demand. This situation has resulted in a crash of the booking system across the country, leaving many consumers frustrated.

The volume of calls to Indane’s IVRS and missed call booking numbers has reportedly increased by 8-10 times the usual levels. This spike in demand has overwhelmed the existing infrastructure, leading to longer wait times for customers seeking to book their LPG cylinder refills.

Government Response and Supply Challenges

In response to the rising demand, the government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 days to 25 days. This adjustment reflects the severe imbalance between supply and demand, as the supply of domestic cylinders has been reduced by 50% while demand has surged by 50%.

As a result of these challenges, the price of a standard 14.2kg LPG gas cylinder in Delhi has risen to ₹913, marking an increase of ₹60. The situation is further complicated by geopolitical tensions that have delayed imports, which account for 60% of India’s LPG needs.

Consumer Reactions and System Failures

Consumers have expressed their anxiety over the situation, with reports indicating that many have crowded distribution centers with empty cylinders, seeking immediate replacements. An employee at an Indane distribution center noted, “People were anxious and crowded the office with their empty cylinders to get new ones.”

The disruption has not only affected consumer bookings but has also impacted the vendor invoice management system, which is currently down, according to a distributor in Bengaluru. Additionally, one consumer in Madipakkam reported that the IVR system kept repeating its message, further adding to the frustration.

Looking Ahead

As the situation evolves, the focus remains on stabilizing the supply chain and addressing the overwhelming demand. While domestic production has been prioritized, uncertainties regarding the timeline for resolving these issues persist. Details remain unconfirmed.

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“Yes, yes, definitely,” remarked Alma Newell, reflecting the growing concern over the rise in natural gas prices as geopolitical tensions escalate. The current situation has seen a significant spike in energy costs, particularly in the context of the ongoing conflicts involving the US, Israel, and Iran.

Recent data indicates that the cost of natural gas in the spot market has risen dramatically, with prices reaching $25.40 per million British thermal units (mbtu). This increase is attributed to the disruptions caused by the war, which includes the shuttering of the Strait of Hormuz, a critical node in global transit and shipping.

In January, India reported a total consumption of natural gas at 5,252 million metric standard cubic metres (MMSCM), with approximately 54% of this consumption met through liquefied natural gas (LNG) imports. The reliance on LNG is particularly pronounced as more than 50% of India’s imported LNG passes through the Strait of Hormuz, making the country vulnerable to fluctuations in global supply.

GAIL (India) Ltd has acknowledged the challenges posed by these developments, stating that it is currently assessing the situation regarding potential supply curtailments that may need to be imposed on its downstream customers. This assessment comes in light of a force majeure notice issued by its long-term supplier, Petronet LNG Limited (PLL), which further complicates the supply landscape.

As the situation evolves, Gregory Brew commented, “I think the current price increase in oil suggests the US will see $3.50 to $4 gasoline by next week, and $5 diesel this week.” This prediction underscores the interconnectedness of oil and gas prices, as fluctuations in one often lead to changes in the other.

In response to rising costs, India’s oil marketing companies have raised liquefied petroleum gas (LPG) prices by an average of Rs 60 per cylinder. This increase reflects the broader trend of rising energy prices, which are impacting consumers and businesses alike.

As the global energy market continues to react to these tensions, the focus remains on how countries will navigate the challenges posed by supply disruptions and price volatility. All oil refining companies operating in India have been directed to maximize the utilization of propane and butane streams for LPG production, indicating a strategic shift in response to the current crisis.

Details remain unconfirmed regarding the long-term implications of these price increases, but the immediate effects are being felt across various sectors, highlighting the critical nature of stable energy supplies in today’s interconnected world.

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Indian families face an acute cooking gas shortage due to the ongoing conflict in West Asia, which has disrupted supply chains. As the world’s second-largest buyer of liquefied petroleum gas (LPG), India sources over 90% of its supplies from the Middle East, making it particularly vulnerable to geopolitical tensions.

In the fiscal year 2024-25, India consumed 31.3 million tonnes of LPG but produced only 12.8 million tonnes domestically. This heavy reliance on imports has raised concerns about the availability of cooking gas for the approximately 33 crore active LPG connections in the country.

The Ministry of Petroleum and Natural Gas has responded by ordering all oil refining companies to maximize LPG production to meet household needs. “All oil refining companies operating in India shall maximise and ensure that Propane and Butane streams produced, recovered, fractionated or otherwise available with them are utilised for production of liquefied petroleum gas (LPG),” the ministry stated.

As a direct consequence of the supply issues, the price of a 14.2kg domestic LPG cylinder has increased by Rs 60, reaching Rs 913 in Delhi. This price hike is particularly concerning for households that rely heavily on LPG for cooking.

Approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports. However, GAIL reported that its long-term supplier, Petronet LNG Limited, issued a force majeure notice, reducing LNG allocations to zero. This has raised alarms about potential supply curtailments.

The crisis intensified last week when Qatar, one of India’s top-three suppliers of natural gas, declared a production stoppage for LNG and associated products. GAIL is currently assessing the situation regarding any supply curtailment that may need to be imposed on its downstream customers.

Public sector oil marketing companies have locked in 2.2 million tonnes of US Gulf Coast imports for 2026, which accounts for about 10% of India’s annual needs. However, the ongoing conflict raises uncertainties about whether these measures will be sufficient to stabilize the situation.

India’s heavy reliance on imports that come through the Strait of Hormuz has made total price protection challenging. With 85-90% of LPG imports passing through this critical chokepoint, any disruption can have significant repercussions on domestic supply.

Details remain unconfirmed regarding the exact impact of the ongoing West Asia conflict on future gas supplies. Additionally, the long-term viability of production at current spot prices remains in question, as the situation continues to evolve.

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