📰 Steel Ministry Seeks Urgent Intervention as LPG Shortage Hits Mills Amid West Asia Crisis

India’s steel sector is facing mounting pressure as the Ministry of Steel has stepped in to address acute LPG shortages affecting steel mills, with sources confirming that the issue has been raised with the Ministry of Petroleum and Natural Gas.

⚠️ Steel Industry Under Strain

Officials revealed that several steel plants across the country have reported disruptions in LPG supply, which is critical for various heating and processing operations in steel manufacturing. The ministry has flagged these concerns to ensure that industrial fuel supply chains remain stable and production is not severely impacted.

🌍 Root Cause: West Asia Conflict

The crisis is being driven by ongoing geopolitical tensions involving Iran and the wider West Asia region. The conflict has disrupted shipping routes—particularly through key energy corridors—leading to delays and reduced LPG shipments to India.

India, the world’s second-largest crude steel producer, is now grappling with what industry insiders describe as one of the worst LPG supply crunches in decades.

⛽ Heavy Dependence on Imports

The situation is exacerbated by India’s reliance on imports:

• Around 60–65% of LPG demand is met through imports

• Nearly 90% of these imports come from West Asia 

With shipments disrupted, supply chains have tightened significantly, especially for commercial and industrial users, as the government prioritizes household cooking gas.

🏭 Impact on Industrial Operations

The shortage is already affecting multiple sectors:

• Steel plants facing reduced operational efficiency

• Manufacturing units dealing with fuel rationing and delays

• Some industries operating at lower capacity levels

Across Asia, industries are witnessing production cuts due to similar energy disruptions linked to the conflict.

🏛️ Government Response

The Centre has taken steps such as:

• Increasing domestic LPG production

• Diversifying imports from countries like the US and Russia

• Prioritizing household supply over industrial usage

However, industry players are urging targeted intervention to ensure that critical sectors like steel do not face prolonged disruption.