Last February, when the war between the US and Iran broke out, the entire world, including India, faced oil and gas shortages. When a ceasefire was declared between the two countries, people and governments breathed a sigh of relief. However, now that the war has resumed, the situation has returned to normal. Cooking gas is being considered the biggest threat. What is the actual situation? Will we face another LPG shortage?

The situation regarding LPG is serious.
In fact, India imports most of its LPG needs from abroad, of which 90 percent comes to India through the Strait of Hormuz. Therefore, gas shortage is the biggest threat. India faced a severe gas shortage in the months of March, April and May, due to which people had to wait for cylinders for months and stand in long lines. If the sea route is blocked again due to war, the supply of domestic gas cylinders could be affected. Moreover, prices could also increase.

Just as the inability to raise petrol and diesel prices has caused losses for state-owned
oil companies, they are also facing significant losses due to gas. According to government data, state-owned oil companies were losing ₹500 to ₹700 per domestic LPG cylinder until June 2026. If international prices rise again, the government will have two options: either increase the subsidy or raise the price of the cylinder.

The country needs a strategic reserve
to develop a strategy to avoid this crisis. Instead of purchasing and using oil daily, it would be better to maintain domestic reserves. Currently, India has a strategic petroleum reserve of 5.33 million metric tons, which can meet only 9.5 days of oil needs. The International Energy Agency (IEA) recommends maintaining a strategic reserve of approximately 90 days.

PC: Navarastra