Restoration of disrupted global LPG supply chains could take three to four years, as it remains unclear if production has been halted temporarily or there has been permanent damage, a senior government official said, according to a Moneycontrol report dated April 15, 2026.
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Supply Restoration Timeline Remains Uncertain
India, which depends heavily on West Asia for LPG imports, has been affected by the blockade of the Strait of Hormuz and Iranian strikes on regional energy infrastructure following US-Israeli military actions. “Based on inputs from affected suppliers, restoration could take at least three years, and possibly longer,” the official reportedly said, highlighting growing import risks and cost pressures.
Heavy Dependence on West Asian Imports
The country’s reliance on imports remains substantial, with nearly 60 percent of its LPG consumption sourced externally. Prior to the conflict, about 90 percent of these imports were routed through the Strait of Hormuz. However, as of March 24, the share of Gulf imports declined to 55 percent, reflecting both supply disruptions and efforts to diversify sourcing, according to the report.
Diversification Efforts Amid Disruptions
Despite rerouting shipments and identifying alternative suppliers, effective supply disruption is estimated to remain at 40–50 percent, according to an April report by Rubix Data Sciences and Vayana TradeXchange. The government is focusing on ensuring continuity of household supply while exploring alternative sourcing options to mitigate shortages, the official was quoted as saying.
“Your LPG supply might take that long because some of the very critical LPG supplies are shut down. What ‘shut’ exactly means is not fully clear — whether entire wells have been exhausted or production has stopped — but they themselves are saying it will take at least three years,” the official reportedly said.
Authorities are also revisiting contingency measures implemented during the COVID-19 pandemic, including diversifying import sources, rerouting cargo, boosting domestic production, and managing demand patterns. The focus remains on ensuring that households do not face supply disruptions.
Storage Constraints Heighten Risks
India’s limited storage capacity—covering only about 15 days of consumption against an annual demand of around 33 million tonnes—has heightened short-term supply risks and exposure to price volatility, according to the report. Domestic LPG prices have already risen, with 14.2 kg cylinders increasing by Rs 60 since mid-March and commercial cylinders by Rs 115 over the same period.
Gulf Nations Continue to Dominate Supply
The Gulf region continues to dominate India’s LPG imports. The UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman collectively accounted for 92 percent of India’s LPG supplies, valued at USD 6 billion in FY25. The UAE alone contributed 41 percent, followed by Qatar at 22 percent.
Rising Prices and Economic Impact
Ongoing disruptions have increased freight costs and insurance premiums, further inflating LPG prices. Emergency directives to refiners to maximise LPG output could also strain refining margins.
According to the report, rising prices are impacting commercial consumers, including hotels, restaurants and micro, small and medium enterprises, while increasing subsidy burdens on oil marketing companies supplying domestic cylinders.
Despite being a net exporter of refined petroleum products, India continues to depend on imports for fuels such as LPG, naphtha and fuel oil, leaving it vulnerable to global supply shocks and price fluctuations.
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