Restoration of disrupted international LPG provide chains might take three to 4 years, because it stays unclear if manufacturing has been halted quickly or there was everlasting injury, a senior authorities official stated, in accordance with a Moneycontrol report dated April 15, 2026.
Provide Restoration Timeline Stays Unsure
India, which relies upon closely on West Asia for LPG imports, has been affected by the blockade of the Strait of Hormuz and Iranian strikes on regional power infrastructure following US-Israeli army actions. “Primarily based on inputs from affected suppliers, restoration might take no less than three years, and probably longer,” the official reportedly stated, highlighting rising import dangers and price pressures.
Heavy Dependence on West Asian Imports
The nation’s reliance on imports stays substantial, with almost 60 p.c of its LPG consumption sourced externally. Previous to the battle, about 90 p.c of those imports have been routed via the Strait of Hormuz. Nonetheless, as of March 24, the share of Gulf imports declined to 55 p.c, reflecting each provide disruptions and efforts to diversify sourcing, in accordance with the report.
Diversification Efforts Amid Disruptions
Regardless of rerouting shipments and figuring out various suppliers, efficient provide disruption is estimated to stay at 40–50 p.c, in accordance with an April report by Rubix Information Sciences and Vayana TradeXchange. The federal government is specializing in making certain continuity of family provide whereas exploring various sourcing choices to mitigate shortages, the official was quoted as saying.
“Your LPG provide may take that lengthy as a result of a few of the very vital LPG provides are shut down. What ‘shut’ precisely means will not be absolutely clear — whether or not total wells have been exhausted or manufacturing has stopped — however they themselves are saying it’s going to take no less than three years,” the official reportedly stated.
Authorities are additionally revisiting contingency measures applied in the course of the COVID-19 pandemic, together with diversifying import sources, rerouting cargo, boosting home manufacturing, and managing demand patterns. The main target stays on making certain that households don’t face provide disruptions.
Storage Constraints Heighten Dangers
India’s restricted storage capability—masking solely about 15 days of consumption in opposition to an annual demand of round 33 million tonnes—has heightened short-term provide dangers and publicity to cost volatility, in accordance with the report. Home LPG costs have already risen, with 14.2 kg cylinders growing by Rs 60 since mid-March and industrial cylinders by Rs 115 over the identical interval.
Gulf Nations Proceed to Dominate Provide
The Gulf area continues to dominate India’s LPG imports. The UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman collectively accounted for 92 p.c of India’s LPG provides, valued at USD 6 billion in FY25. The UAE alone contributed 41 p.c, adopted by Qatar at 22 p.c.
Rising Costs and Financial Affect
Ongoing disruptions have elevated freight prices and insurance coverage premiums, additional inflating LPG costs. Emergency directives to refiners to maximise LPG output might additionally pressure refining margins.
Based on the report, rising costs are impacting industrial shoppers, together with accommodations, eating places and micro, small and medium enterprises, whereas growing subsidy burdens on oil advertising corporations supplying home cylinders.
Regardless of being a web exporter of refined petroleum merchandise, India continues to depend upon imports for fuels equivalent to LPG, naphtha and gas oil, leaving it susceptible to international provide shocks and value fluctuations.
