LPG Supply Crunch: Hormuz Tensions Cause 16.2% YoY Drop in April LPG Imports
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📌 Summary:
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India's LPG imports fell 16.2% year-on-year in April 2026 due to disruptions in shipping through the Strait of Hormuz caused by the Iran-Israel conflict
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The Strait of Hormuz is the world's most critical oil/gas chokepoint — ~20% of global petroleum and ~25% of global LNG passes through it; about 80% of India's LPG comes from Gulf states via Hormuz
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Tanker operators are avoiding Hormuz, leading to rerouting via Cape of Good Hope (adds ~2 weeks and 15-20% extra freight costs)
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India's LPG imports halved from their peak; domestic LPG production covers only ~40% of demand — the rest is imported
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Disruption threatens the Ujjwala Yojana beneficiaries (over 10 crore households) who depend on affordable cooking gas
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IOCL, BPCL, and HPCL have activated emergency procurement protocols, including spot purchases from non-Gulf sources (US, Australia, Algeria)
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Government is considering releasing LPG from strategic storage reserves to bridge the gap; also reviewing price formula to prevent domestic price spike
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UPSC Relevance: Strait of Hormuz geography, India's energy security vulnerabilities, strategic petroleum reserves
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