India Faces LPG Supply Crisis After Losing Key Supply Route

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India Faces LPG Supply Crisis After Losing Key Supply Route

India is facing a serious energy challenge after the closure of the Strait of Hormuz. The disruption followed rising regional tensions after Iran carried out retaliatory strikes. This situation has affected global energy routes and created supply risks.

Experts say India depends heavily on this route for liquefied petroleum gas (LPG) imports. Nearly 90% of its LPG supply passes through the Strait of Hormuz. The closure has disrupted shipments and put pressure on the country’s energy system.

The impact is already visible in many cities. Reports show panic buying has increased as people try to secure LPG cylinders. This sudden rise in demand is adding more pressure on limited supplies. Authorities are now considering rationing to manage stocks and avoid shortages.

India has seen strong growth in LPG use in recent years. This increase is linked to the Pradhan Mantri Ujjwala Yojana. The program has helped millions of low-income families switch to cleaner cooking fuel. Today, about 60% of households in India depend on LPG for daily use.

Demand reached a record level in February 2026. Monthly consumption touched around 2.8 million tons. This was a 10% increase compared to the same period last year. The rising demand has made the current supply disruption more serious.

To manage the crisis, India may look at alternative suppliers like the United States, Russia, and Norway. However, shifting supply sources is not easy. Longer routes and higher shipping costs are key challenges. Logistics issues could also delay quick relief.

The situation shows how important global energy routes are. A disruption in one region can affect supply chains worldwide. Essential fuels like LPG are critical for daily life. Any shortage can impact millions of households.

In other related news also read LPG price rises by Rs3.68 per kilogram

For now, India continues to monitor the situation closely. Authorities are expected to take steps to manage demand and secure supplies in the coming weeks.

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