Indian Gas Shortage 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 intensified the crisis, especially after QatarEnergy announced a production stoppage for LNG and associated products, which are crucial for India’s energy needs.
The Ministry of Petroleum and Natural Gas has responded by ordering all oil refining companies to maximize LPG production for household cooking. “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),” the ministry stated.
As a result of these supply issues, the price of a 14.2kg domestic LPG cylinder has increased by Rs 60, now costing Rs 913 in Delhi. This price hike is particularly concerning for the 33 crore active LPG connections in the country, as domestic cooking needs take precedence over commercial uses, according to the Ministry.
Approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports, highlighting the country’s dependency on external sources. 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.
Public sector oil marketing companies have secured 2.2 million tonnes of imports from the US Gulf Coast for 2026, which accounts for about 10% of India’s annual needs. However, the crisis has raised questions about the long-term viability of production at current spot prices.
Details remain unconfirmed regarding the exact impact of the ongoing West Asia conflict on future gas supplies. Observers are closely monitoring the situation as the energy landscape continues to evolve amid these geopolitical tensions.
