India’s cooking gas supply chain is facing increasing pressure as tensions in the Middle East disrupt maritime traffic through the Strait of Hormuz, one of the world’s most critical energy shipping routes. While petrol and diesel continue to remain available at fuel stations across the country, LPG supplies have begun showing signs of strain.
Reports of long queues outside gas agencies and delays in cylinder deliveries have surfaced in several cities. Some restaurants and roadside eateries have temporarily shut operations due to the limited availability of commercial LPG cylinders.
The disruption comes after escalating conflict in the Middle East, where US-Israeli strikes on Iran and Tehran’s retaliation have affected shipping movement in the Persian Gulf region. The Strait of Hormuz, a narrow passage connecting the Gulf to global markets, handles a significant portion of global energy shipments, including supplies bound for India.
Why LPG Is Being Affected First
India consumes more than 31 million tonnes of LPG annually, but domestic production covers less than half of that demand. The remaining supply is imported mainly from Gulf countries such as UAE, Qatar, Saudi Arabia, and Kuwait.
Nearly 80–90 percent of LPG cargoes heading to India pass through the Strait of Hormuz, making cooking gas particularly vulnerable when shipping through the corridor slows or stops.
Petrol and Diesel Supply More Diversified
In contrast, petrol and diesel are produced in India from imported crude oil, and crude imports are more diversified. India purchases crude oil from over 40 countries, including Russia, Iraq, and Saudi Arabia.
A large portion of Russian crude reaches India through routes that bypass the Strait of Hormuz, reducing the immediate impact of disruptions in the Gulf.
India also has surplus refining capacity, allowing refineries to adjust fuel output depending on demand.
Strategic Reserves Offer Protection
Another key factor protecting petrol and diesel supply is India’s strategic petroleum reserves. The country stores crude oil in underground caverns in Visakhapatnam, Mangaluru, and Padur, which can support consumption for several weeks during supply disruptions.
LPG, however, has very limited storage capacity. India’s LPG storage caverns can hold only about 1.4 lakh tonnes, which is equivalent to less than two days of national consumption.
Growing Demand Adds Pressure
India’s LPG demand has surged dramatically in the last decade, largely due to the Pradhan Mantri Ujjwala Yojana, which expanded access to clean cooking fuel for rural households.
The number of LPG connections in India increased from around 16.6 crore in 2016 to nearly 33 crore by 2025, doubling the country’s dependence on a steady LPG supply.
Government Response
To stabilise supply, the government and oil companies have taken several steps:
- Refineries are being asked to maximise LPG recovery from crude processing.
- Some petrochemical feedstock streams like propane and butane are being redirected to produce more cooking gas.
- Authorities are exploring additional LPG imports from the United States and West Africa, though these shipments may take longer to reach India.
Meanwhile, the sale of commercial LPG cylinders has been restricted temporarily to prioritise domestic consumers.
Current Situation
Despite panic buying and queues at some fuel stations, the government maintains that petrol and diesel supplies remain stable across the country.
However, the LPG shortage highlights how quickly geopolitical tensions in distant regions can impact daily life in India, especially in households that rely on cooking gas for everyday needs.
Originally published on 24×7-news.com.
