India has called on its citizens to remain calm and avoid panic buying as the country faces challenges in meeting the domestic demand for liquefied petroleum gas (LPG). As the world’s second-largest importer of LPG, India is grappling with supply constraints that have put pressure on the availability of this essential cooking fuel for millions of households. The government has emphasized the importance of conserving energy and using LPG responsibly during this period of tightened supply.
In response to the emerging shortage concerns, the federal government has invoked emergency powers to direct refiners to maximize LPG production. This move also includes restricting LPG sales to industrial sectors to prioritize household consumption. Currently, around 333 million Indian homes rely on LPG connections for their cooking needs, making uninterrupted supply a critical priority. The government’s intervention has successfully increased domestic LPG output by approximately 25%, a significant boost aimed at alleviating the pressure on supplies.
Despite these efforts, various sectors such as restaurants, hotels, and industries that depend on LPG are beginning to experience the impact of reduced availability. The tightening of LPG supplies has led to concerns about potential disruptions in daily operations and service delivery. Authorities have also highlighted that misinformation has fueled panic buying and hoarding behaviors among consumers, which further exacerbates the supply challenges. Sujata Sharma, a joint secretary in the federal oil ministry, stressed that such reactions are unwarranted and urged the public to avoid unnecessary stockpiling.
The root of the supply disruption lies in the broader geopolitical tensions affecting global energy markets. The ongoing conflict involving the United States, Israel, and Iran has severely disrupted shipping routes through the Gulf and the strategically vital Strait of Hormuz. These disruptions have hindered the smooth flow of crude oil, LPG, and liquefied natural gas (LNG) shipments to India, which heavily depends on imports to meet its energy needs. Last year, India consumed 33.15 million metric tons of cooking gas, with imports accounting for nearly 60% of this demand. Notably, about 90% of these imports originate from Middle Eastern countries.
In addition to LPG, India imports roughly half of its total natural gas consumption, which stands at 190 million standard cubic meters per day (mscmd). However, LNG imports have also been affected, with the country’s largest supplier, Qatar, declaring force majeure and reducing shipments. This has compelled India to reallocate gas supplies, diverting them from less critical sectors to prioritize essential users. To mitigate the impact, India has secured alternative crude oil and LNG supplies, with two LNG cargoes already en route to the country.
Indian refiners have also taken advantage of a temporary waiver granted by Washington, allowing them to purchase millions of barrels of Russian oil floating on the high seas. This strategic move has helped maintain refinery operations at full capacity despite the global uncertainties. Sujata Sharma reassured that while the Middle East conflict presents significant challenges worldwide, India’s fuel demand continues to be met through vigilant monitoring and proactive measures. The government remains committed to ensuring uninterrupted fuel supplies, safeguarding households, and supporting priority sectors during these turbulent times.
