India rations LPG supplies as Hormuz conflict disrupts West Asia imports – Firstpost

India has begun rationing liquefied petroleum gas (LPG) supplies and barred customers with piped natural gas (PNG) connections from purchasing LPG cylinders, Reuters reported on Monday, as disruptions in the Strait of Hormuz triggered by the US-Israeli war on Iran strain fuel imports from West Asia.

According to the report, a government order issued on Monday directed that households already connected to PNG networks would no longer be eligible to buy LPG cylinders with immediate effect, as New Delhi seeks to conserve cooking gas supplies and prioritise distribution.

The move comes after authorities reduced LPG supplies to some industrial users amid growing concerns over shortages linked to shipping disruptions through the Strait of Hormuz, one of the world’s most critical energy trade routes.

India consumed 33.15 million metric tonnes of LPG in 2025, largely used as cooking fuel, with imports accounting for about 60 per cent of total demand. Nearly 90 per cent of those imports came from West Asia, leaving the country highly exposed to disruptions in the region.

The closure of the Strait of Hormuz following the escalation of the US-Israeli conflict with Iran has disrupted crude oil and fuel shipments across global markets, forcing Asian buyers including India to scramble for alternative supplies.

New Delhi has increasingly pushed consumers to adopt piped natural gas as part of a broader strategy to reduce reliance on imported LPG. The latest restriction is expected to accelerate that transition, particularly in urban areas where PNG infrastructure is already in place.

Indian refiners have meanwhile diversified crude sourcing after supplies from West Asia were hit by the conflict. According to preliminary data from energy analytics firm Kpler cited by Reuters, refiners sharply increased imports from Venezuela, Brazil, Angola and Nigeria during April and May, while continuing purchases of discounted Russian crude.

India, the world’s third-largest oil importer and consumer, had traditionally relied heavily on nearby West Asian suppliers before the conflict intensified at the end of February.

Last month, India skipped crude purchases from Iraq after exports were halted due to the regional conflict. However, the country received Iranian oil for the first time in seven years after Washington granted a temporary waiver aimed at stabilising global oil prices.

Imports of Russian oil into India fell about 29.4 per cent from March levels to around 1.6 million barrels per day after Nayara Energy shut its 400,000-barrel-per-day refinery for maintenance, the Kpler data showed.

Preliminary estimates indicate India is set to receive around 1.9 million barrels per day of Russian crude and about 41,000 barrels per day of Iraqi oil in May as supply chains begin to partially recover.

The government has not announced any restrictions on domestic household LPG consumption so far, but industry officials said authorities were closely monitoring inventories and import flows as geopolitical tensions continue to threaten energy supplies across the region.