India Faces 400,000 Barrel per Day LPG Shortage As Strait of Hormuz Closure Sparks Energy Crisis

India is facing a severe LPG supply crunch of around 400,000 barrels per day compared to pre-war levels, as the closure of the Strait of Hormuz - through which India received over 80 per cent of its LPG imports - continues to bite hard. The world's third-largest consumer of LPG cooking fuel is now scrambling to find alternatives as prices surge and supplies dwindle.

How the Shortage Unfolded

In February, the last full month the Strait of Hormuz remained open, India's LPG shipments stood at 851,870 barrels per day. By April, that number had collapsed to just 377,620 barrels per day, according to analytics firm Kpler - a fall of over 55 per cent in just two months. Domestic production rose by around 75,000 barrels per day to reach 530,000 barrels, but was nowhere near enough to offset the steep drop in imports. Adding to the concern, India does not maintain long-term strategic reserves of LPG. Officials confirmed on May 11 that the country holds only 45 days of rolling stock, alongside 60 days of crude oil and natural gas reserves. New LPG Cylinder Rules From May 1: Booking, OTP Delivery and Price Changes You Must Know.

Price Hikes Hit Households and Businesses Hard

In early March, the government raised the price of a standard 14.2-kilogram household LPG cylinder by Rs 60. The impact was immediate - cylinder sales dropped 13 per cent in March year-on-year, followed by a further 12.7 per cent fall in April. Businesses have been hit even harder. Commercial LPG cylinders have seen a price hike of Rs 993, pushing costs above Rs 3,000 in Delhi and Mumbai. On the black market, domestic cylinders are now selling for over Rs 3,000 - more than triple the government-mandated price of around Rs 915. LPG Supply in India: Over 1.26 Crore LPG Cylinders Delivered in Last 3 Days, Says Government.

India Looks Beyond the Middle East

With shipments from its four main Middle Eastern suppliers - the UAE, Qatar, Kuwait and Saudi Arabia - down 75 per cent in April compared to February, India has begun sourcing LPG from Iran, Australia, Argentina, Chile and the United States. The US alone supplied 149,000 barrels per day in April. However, while Middle Eastern supplies used to arrive in five to six days, shipments from Australia take around 20 days and those from Argentina and the US can take 35 to 45 days.

Can India Find a Long-Term Fix?

The government is accelerating piped natural gas connections, adding over half a million new households in March. But with only 16 million piped gas users against 330 million LPG-dependent households, the gap is enormous. Sales of electric stovetops are rising as families seek immediate alternatives - but India's 400,000 barrel per day shortfall will not be bridged anytime soon.

(The above story first appeared on LatestLY on May 21, 2026 09:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).