India LPG Crisis: India's LPG imports have also declined, and domestic production has also fallen by approximately 10% compared to last month. This is a result of escalating tensions between the United States and Iran.

LPG supply in India: India's liquefied petroleum gas (LPG) supply is under pressure in April. Imports have nearly halved compared to February. Furthermore, domestic production has also declined by approximately 10% compared to the previous month. Escalating tensions between the US and Iran are further complicating the situation. Energy shipments are facing disruptions, and now supplies are also dwindling.

LPG imports are decreasing

Between April 1 and April 14, India imported just 37,000 tons of LPG per day, down from 73,000 tons daily in February. Meanwhile, while the United States has emerged as the largest supplier, India still relies on Gulf countries for more than half of its imports.

Since most of the world's LPG is booked under long-term contracts, leaving only a small amount available for immediate purchase, India is finding it difficult to rapidly increase supplies, even as demand continues to rise. Even reports of a ceasefire between the US and Iran have not yet significantly alleviated the crisis.

When will the supply be restored?

As already mentioned, India is heavily dependent on West Asia for its LPG supplies. The blockade of the Strait of Hormuz and attacks on Iran's energy infrastructure in response to US-Israeli military action have severely impacted this supply.

According to a Moneycontrol report, an official, speaking on condition of anonymity, said, "Based on information received from affected suppliers, it could take at least three years, and possibly longer, to restore supplies." The official pointed to India's growing import risks and cost pressures. India's dependence on LPG imports remains high, accounting for approximately 60% of its total consumption.

Before the war began in February, approximately 90% of this supply came through the Strait of Hormuz. By March 24, the share of imports from Gulf countries had declined to 55%, indicating both disruptions in supply and diversification of supply sources.