Indian Gas Shortage Amid West Asia Conflict
Indian families face an acute cooking gas shortage due to the West Asia conflict disrupting supply chains. As the world’s second-largest buyer of liquefied petroleum gas (LPG), India sources over 90% of its supplies from the Middle East, making it particularly vulnerable to geopolitical tensions.
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 concerns as the price of a 14.2kg domestic LPG cylinder increased by Rs 60, reaching Rs 913 in Delhi.
The Ministry of Petroleum and Natural Gas has ordered all refineries to maximize LPG production for household cooking, emphasizing that “33 crore active LPG connections at risk; domestic cooking trumps hotels per MoPNG emergency order.” This directive comes as public sector oil marketing companies (OMCs) have locked in 2.2 million tonnes of US Gulf Coast imports for 2026, which constitutes about 10% of India’s annual needs.
Approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports. However, GAIL reported that its long-term supplier, Petronet LNG Limited, issued a force majeure notice, reducing LNG allocations to zero. GAIL is currently assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers.
The crisis intensified last week when Qatar, one of India’s top-three suppliers of natural gas, saw QatarEnergy declare a production stoppage for LNG and associated products. This disruption raises questions about the long-term viability of production at current spot prices.
India’s heavy reliance on imports that come through the Strait of Hormuz has made total price protection challenging. Observers are closely monitoring the situation as the exact impact of the ongoing West Asia conflict on future gas supplies remains unclear. Details remain unconfirmed.
