India LPG imports: India uses a huge amount of LPG every day for cooking in homes and in restaurants. The country is the world’s second-largest consumer of LPG. But India cannot produce enough of this fuel on its own. Domestic refineries make only around 40% to 45% of the LPG needed. Because of this gap, India has to import around 60% of its cooking gas from other countries.
Most of this LPG comes from the Middle East. Nearly 90% of the imported shipments travel through the Strait of Hormuz before reaching Indian ports. This narrow sea route has now become risky because of the ongoing war involving Iran. The conflict and the disruption of ships moving through the strait are now creating problems thousands of kilometres away in India.
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In many Indian cities people are worried about cooking gas supply. Videos on social media show long queues outside LPG dealers. Commercial LPG users like restaurants are facing the biggest problems because their supply is tightening faster than household cylinders.
In Mumbai reports say nearly one fifth of restaurants and hotels have partly or fully stopped operations because gas cylinders are hard to find. In southern cities like Bengaluru and Chennai some eateries say their LPG stocks are almost finished.
Because of the shortage many people are buying electric cookers. Some stores say demand is so high that they are running out of them.
Even with these problems the government says there is no overall shortage of LPG for households. India has more than 300 million domestic LPG users and officials say supply is being directed first to families. The oil ministry said refineries were ordered on 8 March to increase LPG output. Domestic production was raised by about 25% to support household demand. Officials say essential sectors like hospitals and schools will also get priority supply.
1. Qatar
Qatar is the biggest exporter of LPG to India. The country supplies up to 34% of India’s LPG imports. This trade alone is worth around $4.04 billion. In recent years Qatar has sent more than 5.33 million metric tonnes of LPG to India. Because of this huge supply, Qatar remains one of India’s most important energy partners.
The Gulf country provides the propane and butane mix that is commonly used in Indian cooking gas cylinders. That is one reason India continues to rely heavily on Qatari LPG shipments.
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2. United Arab Emirates
The United Arab Emirates is the second largest supplier of LPG to India. It provides close to 26% of the country’s imports. UAE shipments are very important because they help maintain regular supply for India’s massive cooking gas demand.
Along with Qatar the UAE forms the backbone of India’s LPG imports. Much of this gas travels through the Strait of Hormuz before reaching Indian ports.
3. Saudi Arabia and Kuwait
These 2 countries also export significant volumes of LPG to India. Their shipments support the country’s large domestic demand and help keep supply stable during normal times.
However nearly all LPG coming from these Gulf countries has to pass through the Strait of Hormuz. That makes India highly vulnerable when tension rises in the region.
India Looking for New LPG Sources
Because of this heavy dependence on the Middle East India is now trying to diversify its LPG imports. The government and refiners have started exploring supply from other countries so that the country is not fully dependent on one region.
Even with these efforts the reality remains simple. India produces less than half of the LPG it needs and still depends strongly on imports. Experts say that even if refineries increase LPG output by 10% to 20%, domestic production would still only cover around 47% to 50% of total demand.
