New Delhi : Rising geopolitical tensions in the Middle East have begun to impact global energy markets, raising concerns about potential disruptions in oil and gas shipments through the strategically important Strait of Hormuz. The uncertainty has also started affecting India’s fuel supply chain, particularly the availability of commercial LPG cylinders.
In Mumbai, the shortage of commercial LPG has intensified, with industry sources warning that nearly 20 percent of hotels and eateries may be forced to suspend operations if the situation persists.
India consumes more than 30 million tonnes of liquefied petroleum gas (LPG) annually. To safeguard supply during the current crisis, the government has invoked provisions under the Essential Commodities Act, allowing authorities to regulate distribution and ensure essential availability.
According to official data, India’s total LPG consumption stands at around 31.2 million tonnes per year. Of this, approximately 60 percent is imported, while the remaining 40 percent—about 12.4 million tonnes—is produced domestically.
The bulk of LPG usage comes from domestic households. Around 87 percent of consumption is through 14-kg household cylinders, while 19-kg commercial cylinders account for nearly 13 percent of total usage.
A large share of India’s LPG imports comes from West Asian countries. Nearly 80 percent of imported LPG originates from the region, including about 26 percent from the United Arab Emirates, 22 percent from Qatar, and another 22 percent from Saudi Arabia, with the remaining supplies sourced from other countries.
As of March 2026, India has approximately 330.8 million active LPG consumers nationwide.
Earlier this month, on March 7, the government increased the price of domestic LPG cylinders by ₹60, raising the retail price in New Delhi to about ₹913 per cylinder.
However, beneficiaries of the Pradhan Mantri Ujjwala Yojana continue to receive a subsidy of ₹300 per cylinder. With the subsidy applied, around 105 million scheme beneficiaries currently pay approximately ₹613 per cylinder.
Experts warn that if tensions in the Middle East escalate further and shipping routes are affected, the pressure on India’s LPG supply chain could intensify in the coming weeks.