Kamal Ghorui
Giving gas to the most important uses first is sensible, but the rules must be carefully planned so people don’t panic
Markets often change their mood quickly. On Tuesday, they seemed hopeful that the Iran war might end soon. This hope comes partly from Donald Trump, who has described the conflict as a “short-term excursion”. If the fighting ends, oil and gas tankers will again pass through the Strait of Hormuz, an important sea route for energy shipments. When that happens, fuel prices and economic activity could return to normal. Trump also spoke with Vladimir Putin and hinted that the US might ease sanctions on Russia, which is one of the world’s biggest exporters of oil and gas. That has made markets even more hopeful.
Right now, though, natural gas is the bigger problem. India gets about 60% of its LPG and about half of its natural gas from other countries, mostly from Qatar and other West Asian nations. Because of the war, many ships carrying gas cannot travel easily. Gas is also harder to store than oil because it must be kept extremely cold. That means India does not have a large stock of it. So the Government of India has decided to control how gas is shared between different sectors until supplies return to normal.
Usually, fertiliser factories get the biggest share of natural gas. But now the government plans to give priority to PNG for household kitchens and CNG for vehicles. Fertiliser plants and other industries will get gas only if enough is available. LPG for home cooking will also be given priority.
This makes sense, but the government must be careful about how it decides what is “essential”. Not everyone cooks at home. Many people eat in factory canteens, roadside dhabas, restaurants, or hotels. Truck drivers, travellers and delivery workers depend on these places for food. If restaurants and canteens don’t get gas, a large number of businesses and workers could lose income for days or even weeks. That is why rationing rules must be planned carefully.
Another problem with rationing is that it can make people think there is a serious shortage, even if there isn’t. When people panic, they may try to buy more fuel than they need. Sellers may also raise prices unfairly. The government must make sure this doesn’t happen.
This could also be a good time to remind everyone to save energy. Simple habits can help: cooking with a lid on the pot, or using microwaves and induction cookers when possible. In the Philippines, government offices have even been told to keep air conditioners at 24°C while fuel prices are high.
In the long run, India should reduce its dependence on imported gas. One way is to produce more biogas from farm waste and other organic material. India has plenty of this kind of waste. If used properly, it could produce enough gas for the country. The leftover compost could also replace chemical fertilisers. This would save India hundreds of billions of dollars every year.
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