The crisis stems from the closure of the Strait of Hormuz, a critical shipping route through which India received over 80% of its LPG imports.
Domestic production tried to fill the gap, rising by about 75,000 barrels to reach 530,000 barrels per day. But that was not enough to offset the steep drop in imports.
Total sales in April came to 2.19 million metric tons, roughly 846,000 barrels per day.
India Faces 400,000 Barrel Per Day LPG Shortage Amid Energy Crisis
Domestic production can’t keep up as war disrupts vital imports from the Middle East.
Summary
India, the world’s third-largest consumer of LPG cooking fuel, is facing a severe supply crunch, with a shortfall of about 400,000 barrels per day compared to pre-war levels.
The crisis stems from the closure of the Strait of Hormuz, a critical shipping route through which India received over 80% of its LPG imports before the conflict began a Kpler report showed.
Why Are Supplies Falling?
Before the war, India imported nearly two-thirds of its total LPG needs. In February, the last full month the Strait was open, shipments stood at 851,870 barrels per day. By April, that number had plunged to just 377,620 barrels per day, according to data from analytics company Kpler.
Domestic production tried to fill the gap, rising by about 75,000 barrels to reach 530,000 barrels per day. But that was not enough to offset the steep drop in imports.
India does not maintain long-term strategic reserves of LPG. Officials said on May 11 that the country has only 45 days of “rolling stock” of LPG, alongside 60 days’ worth of crude oil and natural gas.
How Are Consumers Being Affected?
In early March, days after the war started, India raised the price of a standard 14.2-kilogram household LPG cylinder by 60 rupees ($0.62). The impact was immediate: LPG cylinder sales fell 13% in March compared to the previous year, followed by another 12.7% drop in April.
Total sales in April came to 2.19 million metric tons, roughly 846,000 barrels per day.
The pressure is even worse for restaurants and businesses. Commercial LPG cylinders recently saw a price hike of 993 rupees ($10), pushing the cost above 3,000 rupees in major cities like Delhi and Mumbai. On the black market, domestic cylinders now sell for over 3,000 rupees, more than triple the government-mandated price of around 915 rupees.
What Is India Doing to Cope?
India is scrambling to find alternatives. The four main Middle Eastern suppliers — the UAE, Qatar, Kuwait and Saudi Arabia, which normally provide 80% of LPG imports — saw their shipments drop 75% in April compared to February.
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To compensate, India has started buying from Iran, Australia, Argentina and Chile. Those four countries supplied 43,000 barrels per day in April — up from zero in February. The U.S. also sent 149,000 barrels per day in April.
But there is a catch: shipments from Australia take about 20 days to arrive, while those from Argentina and the U.S. can take 35 to 45 days. Middle Eastern supplies through Hormuz used to arrive in just five to six days.
Meanwhile, the government is promoting piped natural gas, adding over half a million new connections in March. But only about 16 million households use piped gas, compared to 330 million who rely on LPG. Sales of electric stovetops are also rising sharply as families look for alternatives.
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