Indian Gas Supply Faces Crisis Amid West Asia Conflict
Indian families are facing an acute cooking gas shortage as the ongoing conflict in West Asia disrupts supply chains. India, the world’s second-largest buyer of liquefied petroleum gas (LPG), sources over 90% of its supplies from the Middle East, making it particularly vulnerable to regional instability.
In the fiscal year 2024-25, India consumed 31.3 million tonnes of LPG but produced only 12.8 million tonnes domestically. This heavy reliance on imports has raised concerns about the availability of cooking gas for approximately 33 crore active LPG connections in the country.
The Ministry of Petroleum and Natural Gas has responded to the crisis by ordering all oil refining companies to maximize LPG production. “All oil refining companies operating in India shall maximise and ensure that Propane and Butane streams produced, recovered, fractionated or otherwise available with them are utilised for production of liquefied petroleum gas (LPG),” stated a ministry directive.
As the situation escalates, the price of a 14.2kg domestic LPG cylinder has increased by Rs 60, reaching Rs 913 in Delhi. This price hike is compounded by the fact that approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports.
GAIL, a major player in the gas sector, reported that its long-term supplier, Petronet LNG Limited, issued a force majeure notice, effectively reducing LNG allocations to zero. GAIL is currently assessing the situation regarding potential supply curtailments for its downstream customers.
The crisis intensified last week when Qatar, one of India’s top-three suppliers of natural gas, saw QatarEnergy declare a production stoppage for LNG and associated products. This development has further strained India’s already precarious gas supply situation.
Public sector oil marketing companies (OMCs) have locked in 2.2 million tonnes of US Gulf Coast imports for 2026, which accounts for about 10% of India’s annual needs. However, the ongoing conflict raises questions about the long-term viability of these arrangements.
India’s heavy reliance on imports that come through the Strait of Hormuz has made total price protection challenging, and the exact impact of the ongoing West Asia conflict on future gas supplies remains unclear. Details remain unconfirmed.
As the situation unfolds, observers are closely monitoring the developments and their implications for India’s energy security and household cooking gas availability.
