India’s LPG Crisis 2026: Know the real reason behind the delay in your cylinder

The current LPG crisis has caused a major problem to common people. India has recently seen reports of LPG supply stress in several cities, especially effecting the restaurants, hotels and commercial users. But now it has started impacting the household buyers also.

Does India Produce LPG on domestic level?

India does produce LPG on a domestic level, but production is not enough to meet the demand. So this gap is filled with imports.

Why India is facing LPG supply crisis?

The main reason behind the current LPG crisis in India depends on three factors:

Geopolitical aspect

The most immediate trigger is the escalation of military conflicts in West Asia involving the U.S and Iran. This led to a near complete closure of the Strait of Hormuz.

Strait of Hormuz is a vital, 39km wide maritime chokepoint connecting the Persian Gulf to the Gulf of Oman and the Indian Ocean. It is the world’s most critical oil passageway, it faciliates the daily transit of 20% of the global oil consumption.linking Gulf producers (Saudi Arabia, Iran, UAE) to global markets.

Why Strait of Hormuz Matters?

Roughly 85-90% of India’s LPG imports travel through this narrow passage.

High Import Dependency

India consumes roughly 31-33 million metric tonnes of LPG annually, making it oen of the world’s largest consumers. However, India imports nearly 60-62% of its LPG requirements.

Limited Strategic Reserves

Unlike crude oil, which India can store in large underground facilities for around 60 days as a backup, LPG reserves are quite limited. Current storage can only meet demand for about 5 to 22 days. As a result, even a short disruption in supply can quickly turn into a serious shortage within the country.

Also Read: Israel wants to destroy Iran’s nuclear program? know the reason behind it