Steel ministry seeks intervention for mills facing LPG shortages, source says

India’s federal steel ministry has ​sought assistance from the oil ministry ‌to ensure that steel plants are ​not affected by liquefied ⁠petroleum gas shortages, a source with direct knowledge of the matter told Reuters on ‌Thursday.

India, the world’s second-biggest crude steel producer, is in ‌the midst of its worst ‌LPG ⁠supply crisis in decades ⁠as shipments from key producers in West Asia have been disrupted because of the ​Iran war.

“We have ‌taken up with the Ministry of Petroleum and Natural Gas to see within the existing conditions ‌what best can be done,” the ​source said, “We are still under discussion.”

India’s small steel ⁠producers have warned of production halts due to gas shortages, Reuters reported ‌earlier.

“If this LPG situation continues, it will not only impact margins but also affect jobs, future investments in value-added steel, and the confidence to commit to long-term ‌contracts, both in India and overseas,” said ​Vedant Goel, a director at Pune-based Enlight Metals.

India has invoked ⁠emergency measures, prioritising natural gas for essential ⁠sectors after LNG shipments through the Strait of Hormuz were ‌disrupted by the ongoing conflict in the Middle East, constraining domestic ​supply.