Over Half of India's LPG Passes Through the Strait of Hormuz

As the conflict escalated in the Strait of Hormuz, which facilitates the passage of approximately one-fifth of the world’s oil and a significant portion of India’s energy imports, most commercial traffic in the area was nearly halted.

About 54% of India's LPG consumption was routed through the Strait of Hormuz, putting the supply of cooking gas at risk in the event of disruption.

Nevertheless, India was one of the few countries that managed to keep its energy cargoes moving.

Through sustained coordination, Indian-flagged tankers have continued to transit the Strait of Hormuz and discharge at Indian ports, transporting crude oil and multiple consignments of LPG. There has been no shortage of petroleum products, and bottling and distribution have continued normally across the network.

In response to the disruption, several measures were implemented. On the supply side, domestic LPG production increased by more than 60%, rising from about 32 metric tons (MT) to approximately 52 MT to compensate for constrained imports. Thanks to sustained coordination, LPG-laden vessels have consistently moved out of the Strait of Hormuz, with India having brought out the largest number of such vessels of any country, and all this was achieved without paying any toll.

Sources aimed to expand suppliers globally, including those not reliant on routes through the Strait, such as the United States, Canada, and Algeria. Available LPG was directed towards households and priority users, including hospitals and educational institutions. On the demand side, consumers were encouraged to switch to piped natural gas where available, reducing the reliance on cylinders. Ultimately, Indian gas cylinders are priced lower than in any neighbouring country and significantly below prices in advanced economies such as the United States, Australia, and Canada.