SUPPLY SHOCK: India LPG Demand Soars as Imports Hit, Cities Reel Under Severe Fuel Crunch

India is facing a deepening energy crisis as LPG demand-supply gaps widen amid global disruptions linked to tensions around the Strait of Hormuz. In India, daily LPG consumption stands at nearly 92,000 tonnes—translating to around 65 lakh cylinders per day, or approximately 2.7 lakh cylinders every hour. This massive demand is now colliding with supply constraints, triggering shortages across multiple cities. In Raipur, authorities have halted commercial cylinder distribution, forcing restaurants and hotels to shift to induction cooking and traditional wood-fired stoves. Long queues outside gas agencies highlight the stress on domestic supply. Meanwhile, in Jaipur, the crisis has pushed businesses and households toward coal usage, causing a surge in demand and nearly 20% price hikes. Even coal supplies are now being rationed. The root of the crisis lies in India’s heavy reliance on imports, with nearly 60% of LPG needs sourced internationally. Supply routes through the Strait of Hormuz remain unstable due to escalating conflict involving Iran, delaying shipments and stranding cargo vessels. As a result, everyday life and businesses are under strain, with limited alternatives and rising costs compounding the crisis across urban and semi-urban regions alike.

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