Strait of Hormuz: Iran initially blocked the Strait of Hormuz following the US and Israeli attack on February 28. In response, the US announced a double blockade.

If the blockade from Hormuz is lifted, will cylinders become cheaper in the country?

LPG Supply in India: Tehran announced a blockade of the Strait of Hormuz immediately after the US and Israeli attacks on Iran began on February 28. Subsequently, after the failure of peace talks between the two countries, brokered by Pakistan, on April 13, the US retaliated by imposing the blockade against Iran.

The US's objective in doing so is to harm Iran's economy. US President Donald Trump has stated that the blockade of the Strait of Hormuz by the US Armed Forces and its Central Command will continue until Iran agrees not to develop nuclear weapons and to open the Strait of Hormuz completely free of tolls.

What will happen if the blockade is lifted?

The US and Iran currently have a 60-day ceasefire, which is expected to end in mid-July 2026. If peace talks are reached between the two countries during this time, the Strait of Hormuz is likely to open. With the lifting of the blockade on Hormuz, India's gas shortage will be completely resolved. Normalizing supplies will lower LPG prices in global markets. This will also impact India.

India imports more than 60% of its LPG needs from Gulf countries like Qatar, Saudi Arabia, and the UAE, which transit the Strait of Hormuz. The lifting of the blockade will ensure timely access to raw materials like propane and butane for Indian refineries and bottling plants.

Will gas cylinders become cheaper?

Even when international gas prices fall slightly after the blockade is lifted, oil companies (OMCs) will not immediately reduce cylinder prices because the cost of LPG has risen significantly in the international market due to the war between the US and Iran. To protect the general public from inflation, oil companies are bearing the burden of this increased cost. This is why domestic LPG prices have remained stable in the country for a long time.

However, this may lead to a drop in the prices of commercial cylinders by Rs 200-400 as its prices have already crossed Rs 3000 due to the war.