India Faces LPG Crisis as U.S.-Iran War Disrupts Supply Through Strait of Hormuz

India Faces LPG Crisis as U.S.-Iran War Disrupts Supply Through Strait of Hormuz

India faces a major LPG shortage as the U.S.-Iran war blocks 90% of imports via the Strait of Hormuz. Fuel prices surge, industries shut down, and households turn to traditional cooking methods amid black market spikes and government reassurances on limited stock.

India is confronting a severe LPG supply disruption as a U.S.-Iran war under President Donald Trump has blocked 90% of the country’s LPG imports through the Strait of Hormuz, sharply reducing March volumes by half and straining reserves to just weeks of demand.

The impact has been immediate and widespread. In Bengaluru, private fuel outlets ran dry, triggering panic among motorists and pushing prices up to Rs 89-90 per litre as drivers feared an imminent halt in services. In Surat’s textile hub, industrial activity has been disrupted, with units enforcing two-day shutdowns. The shutdowns have forced migrant workers from Bihar to return home after being compelled to cook on wood due to soaring gas prices of Rs 450 per kg.

Households across affected regions have reverted to traditional chulhas as the shortage deepens. The crisis has also fueled a black market for LPG cylinders, where prices have surged to Rs 400-500 per kg, further burdening consumers already grappling with limited access.

Despite the growing anxiety, the government has maintained that existing stocks are sufficient for 30 days. Officials stated that alternative sourcing efforts are underway, with supplies being arranged from Angola, the United States, and Iran. Authorities have urged the public to remain calm and avoid panic buying, emphasizing ongoing measures to stabilize availability.

Read More RBI Defers New Capital Market Rules Till July 1 Amid Iran War Volatility

The disruption underscores India’s vulnerability to geopolitical tensions affecting critical energy routes, with the Strait of Hormuz crisis exposing the fragility of supply chains and the far-reaching consequences for households, industries, and migrant livelihoods.

Read More War in Iran Triggers Bloodbath in Markets; Rs 51 Lakh Crore Wiped Out in March, April Outlook Remains Uncertain

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