India’s LPG supply has come under serious pressure during April, raising concerns over availability. Moreover, imports have sharply declined compared to February levels, creating additional strain.
At the same time, domestic production has also dropped by nearly 10 percent compared to last month. Therefore, the combined impact has made the situation more challenging for supply management.
Daily Imports Halve, Dependency Persists
Between April 1 and April 14, India imported only 37,000 tonnes of LPG daily. In contrast, February recorded a much higher daily import figure of 73,000 tonnes.
Although the United States has emerged as the largest supplier, dependency remains significant on Gulf countries. In fact, more than half of India’s LPG imports still come from that region.
Limited Availability Worsens Supply Constraints
Since most global LPG supplies operate under long-term contracts, immediate purchases remain limited. Therefore, India cannot increase supply quickly despite rising demand.
Meanwhile, ongoing tensions between the United States and Iran continue to disrupt energy shipments. Consequently, supply chains face repeated interruptions, worsening the crisis further.
Even reports of ceasefire discussions between both nations have not provided any major relief yet.
Strait Disruptions Hit Supply Routes Hard
India relies heavily on Western Asia for LPG supplies, making the region crucial for energy security. However, disruptions around the Strait of Hormuz have affected supply routes significantly.
Additionally, military actions involving the United States and Israel have triggered retaliatory attacks on Iran’s energy infrastructure. As a result, supply flows have weakened further.
Recovery Timeline Raises Fresh Concerns
According to a report, an unnamed official highlighted serious recovery challenges ahead. Based on supplier inputs, full restoration may take at least three years or even longer.
The official also pointed out rising import risks and increasing cost pressures for India. Currently, around 60 percent of India’s LPG consumption depends on imports.
Before the conflict began in February, nearly 90 percent of supplies came through the Strait of Hormuz. However, by March 24, imports from Gulf countries dropped to 55 percent.
This shift indicates both supply disruption and diversification of sourcing strategies.
