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27-03-2026
Bureau Report + Agencies
NEW DELHI/ MOSCOW: The war in Iran and the blockage of the strategic Strait of Hormuz are likely to halve this month’s imports of liquefied petroleum gas by India, its number-two importer, according to traders and ship-tracking data.
India covers around 60% of its LPG needs with imports and until the February 28 US-Israeli strikes on Iran, the Middle East had accounted for around 90% of sea-borne supplies, reaching 22.7 million metric tons last year.
However, this month so far, the share of Gulf exporters fell to around 55%, with about 40% of imports coming from the US and Russia and Argentina accounting for the rest, LSEG data showed.
Sharp drop in March imports
Traders and ship-tracking data from LSEG suggest India is set to import 1.190 million metric tons of LPG this month, down 46% from February on a daily basis.
LPG is mainly used as fuel for cars, heating and to produce other petrochemicals. The government in New Delhi earlier this month asked consumers to avoid panic buying of LPG cylinders and shift to piped natural gas where possible.
India is trying to secure more LPG, or propane and butane, cargoes from new sources such as the United States, Norway, Canada and Russia, in addition to Gulf region supplies that are still available.
Imports from Russia though are constrained by scarcity of available volumes and vessels, as well as relatively long routes from the key LPG exporting outlet of Ust-Luga in the Baltic Sea.
India’s government has said the local refineries have increased LPG output by around 40% from the start of March.
Earlier, India has asked liquefied petroleum gas consumers to avoid panic buying of LPG cylinders and shift to piped natural gas where possible, oil ministry official Sujata Sharma said on Friday.
India’s crude oil, LPG, and liquefied natural gas supplies have been disrupted due to global shipping constraints after the US-Israeli war with Iran halted traffic through the Gulf and the Strait of Hormuz.
“LPG is an issue of concern,” said Sharma, a joint secretary in the federal oil ministry, adding the government is cracking down on black marketing and hoarding of LPG cylinders in coordination with states.
About 333 million households use LPG cylinders, and more than 150 million get gas supplies through pipelines. Sharma said about six million LPG-consuming households could easily switch to piped gas use.
“We request them to avail piped gas connection to ease pressure on LPG,” she said.
She also said that commercial and industrial consumers in major urban cities facing LPG shortages should contact their local city gas distribution company to arrange a piped gas connection.
India consumed 33.15 million metric tons of cooking gas last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East.
Panic buying had pushed daily LPG booking requests to about 7.6 million as of Thursday from around 5.5 million on March 1, with most bookings made online, Sharma said.
India has asked refiners to boost LPG production. Domestic LPG production has risen by 30% since March 5, she said.
The government has prioritized LPG supplies for households, followed by hospitals and educational institutions, while allowing commercial users to use alternative fuels such as biomass, coal and fuel oil.
