India's LPG Supply Under Pressure Amid Geopolitical Tensions

India's LPG supply is under significant pressure due to geopolitical tensions, particularly the ongoing conflict in the Strait of Hormuz. The government has implemented measures to stabilize supply, including adjusting booking intervals and increasing domestic production. However, with nearly 60% of LPG imported, challenges remain as prices rise and black market activity increases. This article delves into the current state of LPG availability, government responses, and the implications for consumers as the situation evolves.

By Narendra Chaudhary Mar 18, 2026, 17:53 IST

Current Status of LPG Supply in India

India's current LPG reserves are estimated to last between two to three weeks. However, this figure is misleading when considering the sources of these supplies. The Ministry of Petroleum and Natural Gas has issued a statement detailing measures taken to ensure a consistent supply of petroleum products and LPG nationwide, while also advising against panic buying. They confirmed that no shortages have been reported at LPG distribution centers. To alleviate supply pressure, the government has adjusted booking intervals to 25 days in urban regions and up to 45 days in rural areas. An amendment to the LPG Control Order was introduced on March 14, mandating that consumers with PNG connections relinquish their domestic LPG connections, and prohibiting new LPG connections for these consumers. A public advisory has been issued, encouraging citizens to utilize digital booking platforms and minimize unnecessary visits to distributors.

Despite these assurances, the reality on the ground presents challenges. India relies on imports for nearly 60% of its LPG, primarily transported through the Strait of Hormuz, a critical shipping lane currently affected by ongoing conflicts following a US-Israel offensive against Iran that commenced on February 28. During a press briefing on March 18, Sujata Sharma, Joint Secretary of the Ministry of Petroleum & Natural Gas, expressed concerns regarding the LPG situation, noting that while online booking has improved, long queues at distributors persist.

This statement followed the arrival of a third Indian-flagged fuel carrier from the crisis-affected West Asia to India within a span of three days, with the Jag Laadki docking at Mundra Port in Gujarat.

As the LPG crisis unfolds, cylinder prices have surged since the onset of the Iran conflict. A local shopkeeper reported that dealers are indicating extended waiting times, with black market activity increasing to meet demand at inflated prices. He mentioned, "I had to shut my shop for five days due to a lack of LPG cylinders, and the delivery wait was excessively long. I incurred significant losses and had to turn to black market sources. A cylinder cost me as much as Rs 4,000, and I was warned that prices could rise further."

Despite government reassurances, the supply route through the Strait of Hormuz remains a significant concern. Currently, 22 Indian-flagged vessels with 611 crew members are positioned west of the Persian Gulf. The Directorate General of Shipping is actively monitoring the situation in collaboration with ship owners, RPSL agencies, and Indian Missions. Two Indian-flagged LPG carriers, Shivalik and Nanda Devi, have successfully navigated the Strait of Hormuz, transporting approximately 92,712 MT of LPG.

Earlier, Sujata Sharma acknowledged that domestic LPG production has risen by 28% due to government initiatives aimed at enhancing household supply. However, she also recognized the inherent vulnerabilities, as India continues to import a significant portion of its LPG, predominantly through the Strait of Hormuz. Efforts to diversify supply sources are in progress. Reports indicate that LPG shipments from the United States commenced in January, while Qatari LNG is temporarily paused but expected to return to the market soon. Additionally, India has started sourcing LPG from Norway and the US to lessen reliance on Gulf routes.

On the domestic front, the Petroleum Ministry has allocated an extra 48,000 KL of kerosene to various states and union territories to support alternative fuel requirements. The government is also encouraging city gas distributors to expand Piped Natural Gas connections for both residential and commercial users, serving as a long-term strategy to mitigate the supply volatility that a two to three-week buffer can only partially address.