Indian families face an acute cooking gas shortage due to the West Asia conflict disrupting supply chains. India, the world’s second-largest buyer of LPG, sources over 90% of its supplies from the Middle East, making it particularly vulnerable to geopolitical tensions.

In the fiscal year 2024-25, India consumed 31.3 million tonnes of LPG but produced only 12.8 million tonnes domestically. This heavy reliance on imports has raised alarms, especially as the Ministry of Petroleum and Natural Gas has ordered all refineries to maximize LPG production for household cooking.

The crisis has intensified recently, particularly after QatarEnergy declared a production stoppage for LNG and associated products, impacting one of India’s top-three suppliers of natural gas. As a result, GAIL reported that its long-term supplier, Petronet LNG Limited, issued a force majeure notice, reducing LNG allocations to zero.

Approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports, which are now under threat. The price of a 14.2kg domestic LPG cylinder has increased by Rs 60, reaching Rs 913 in Delhi, further straining household budgets.

Public sector oil marketing companies (OMCs) have locked in 2.2 million tonnes of US Gulf Coast imports for 2026, which accounts for 10% of annual needs, as a precautionary measure. However, the ongoing conflict raises questions about the long-term viability of these arrangements.

According to the Ministry of Petroleum and Natural Gas, there are currently 33 crore active LPG connections at risk, emphasizing that domestic cooking needs take precedence over commercial establishments like hotels.

GAIL is assessing the situation regarding any potential supply curtailment that may need to be imposed on its downstream customers. The exact impact of the ongoing West Asia conflict on future gas supplies remains unclear, leaving many households in uncertainty.

India’s heavy reliance on imports that come through the Strait of Hormuz has made total price protection challenging, and observers are closely monitoring the situation as it develops.

Details remain unconfirmed regarding the long-term viability of production at current spot prices, adding to the urgency of the situation for Indian consumers.

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