India is currently experiencing a significant disruption to its cooking gas supplies due to a sharp decline in imports amid rising tensions in West Asia.

India’s imports of LPG fell significantly in March, down by 40-46% from previous months, according to shipping data. The disruption is a result of the conflict in West Asia, affecting shipping routes, especially through the Strait of Hormuz, a key shipping lane.

As India’s LPG demand is met through imports to the tune of 60%, a disruption in imports has had a cascading impact on India.

The disruption has impacted India’s LPG import pattern. India traditionally sources LPG from Gulf countries such as the UAE, Qatar, Kuwait, and Saudi Arabia. However, there has been a sharp decline in imports from these countries. In contrast, imports from the United States have risen, while Iran has resumed LPG exports to India after a hiatus.

The effect is also seen in practical situations, with reports of long queues at LPG stations in several cities across the nation. There have also been reports that several businesses that use commercial LPG cylinders, like restaurants and food stalls along highways, have cut down operations or shifted to alternative fuels like coal or diesel.

There have also been reports of black marketing and hoarding in several places, with authorities detecting and confiscating cylinders that have been hoarded and sold at much higher prices.

The transportation sector is also affected by this shortage, with auto LPG prices rising sharply in several places, leading to a cut in operations by auto drivers.

Several measures have been taken by the government to tackle this shortage, which include increasing domestic LPG production, using hydrocarbon streams to increase LPG production, and using alternative fuels like kerosene and natural gas.

The authorities have assured that fuel availability as a whole remains in surplus, with measures in place to ensure stability. However, from a general perspective, it seems that this situation may continue if the situation in West Asia does not improve.

The current scenario also points to India’s dependence on imported fuels. With the situation still unresolved, a key issue for both parties to address is LPG availability.