India's LPG Shortage Hits as Tension Cuts Supply
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- India imports 60‑65% of its LPG, with 90% of those imports coming from West Asia and transiting the Strait of Hormuz.
- Indian‑flagged LPG vessels – six of the 22 stranded ships – carry about 270,000 tonnes of gas, enough for roughly 1.9 million domestic cylinders or three days of national consumption.
- Indian government gave priority to domestic and critical‑service LPG allocation, while restaurants and hotels were deprioritised, prompting menu cuts and higher prices.
- Rystad Energy said India’s inventory buffers are only around ten days, limiting its ability to absorb short‑term shocks.
- JSW Group warned that fuel‑supply disruptions are affecting its operational stability and could force a shutdown at one unit.
- Indane told a customer that an overnight spike in household orders created a weeks‑long waiting list for LPG cylinders.
- Motilal Oswal projects that even with a 30‑50% increase in refinery output, India will still face a shortfall of 1.4‑1.9 million tonnes by 2027.
Why it matters: Households and small eateries lose affordable LPG as prices double, while the government’s ten‑day buffer forces reliance on costly spot cargoes, squeezing low‑income families and pushing migrant workers to return home; manufacturers like JSW face production cuts, threatening supply chains.
