Iran-Israel War Fallout: India Braces for LPG Crisis, Gas Prices Spike

With 66% of India’s 30 million metric tons of annual LPG imports sourced from West Asia, the potential closure of the Strait of Hormuz has sparked alarm, pushing cylinder prices up and straining household budgets.

Disrupted Supply Chains

The escalating war, marked by U.S. strikes on Iran’s nuclear sites and Iran’s missile attacks on Israel, has raised fears of a Hormuz blockade, through which 80% of India’s LPG from Saudi Arabia, Qatar, and the UAE passes. Industry reports indicate India’s strategic and commercial reserves hold only a 16-day supply, insufficient to meet the needs of 300 million households. Refinery disruptions in Iran have further tightened global LPG availability, causing a 12% price surge since June 20.

Rising Costs Hit Kitchens

The price of a 14.2-kg domestic LPG cylinder has jumped from ₹803 to ₹920 in Delhi, with further hikes expected if tensions persist. For families like Sunita Devi’s in Patna, this means cutting back on meals. Posts on X reflect public anxiety, with hashtags like #LPGCrisis trending. Small businesses, such as dhabas, face losses as commercial cylinders near ₹2,000.

Government’s Response

Petroleum Minister Hardeep Singh Puri, addressing the crisis, outlined plans to tap alternative suppliers like Australia and the U.S., though higher shipping costs could keep prices elevated. The government is releasing 1 million metric tons from reserves in Mangalore and Visakhapatnam to stabilize supply temporarily. Subsidies for Ujjwala scheme beneficiaries are under review to cushion the impact on low-income households.

India's LPG Crunch

As India braces for prolonged disruptions, the LPG crisis underscores its vulnerability to global conflicts. Citizens are urged to conserve gas, while the government explores renewable energy to reduce import reliance. With no immediate resolution to the Iran-Israel war, Indian kitchens face tough times ahead.