India Experiences 430 kb/d Drop in LPG Imports During March-April.

The closure of the Strait of Hormuz (SoH), a critical maritime route accounting for two-thirds of India’s liquefied petroleum gas (LPG) supply, has resulted in a significant decline in LPG imports, dropping by 430,000 barrels per day (kb/d) during March and April 2026. According to the International Energy Agency (IEA), the ongoing conflict in West Asia has triggered an unprecedented global energy crisis, with LPG—used by approximately 3.4 billion people worldwide—as a core focus. The IEA reported that LPG shipping flows through the SoH fell by around 80%, resulting in a drastic reduction from an average of 1.5 million barrels per day (mb/d) in 2025 to just 0.3 mb/d in March 2026. This decline has severely impacted India, which is heavily reliant on this route for its energy needs, particularly for cooking fuel.

For the common citizen and market, the implications are far-reaching. The significant drop in LPG imports has led to commercial consumers experiencing limitations in accessing pre-conflict LPG supplies, while both household and commercial users are facing soaring prices in unregulated markets. The IEA has noted that prices for LPG imports surged between 70% and 90% above the average levels from the previous year. With a storage capacity covering just over 10 days of consumption, the limited buffer exacerbates the situation, compelling the government to instruct domestic refineries to maximize output and introduce demand-side measures to mitigate the impact on households.

Looking ahead, the long-term outlook remains uncertain, but the Indian government and the Reserve Bank of India (RBI) are likely to focus on securing alternative supply routes and increasing domestic production capabilities. Additional measures may include bolstering strategic reserves and exploring partnerships with other oil-exporting nations. Given the gravity of the situation, it will be crucial for policymakers to address the vulnerabilities in the LPG supply chain, not only to stabilize prices and secure energy for cooking needs but also to ensure that the economy can withstand future shocks arising from geopolitical unrest in the region.