Home / Business and Economy / Strait of Hormuz Closure Sparks India's LPG Crisis
Strait of Hormuz Closure Sparks India's LPG Crisis
25 Mar
Summary
- Strait of Hormuz closure on Feb 28, 2026, disrupted 90% of India's LPG imports.
- Restaurants and eateries face severe cylinder availability drop of 40-50%.
- Government declares emergency, directs 10% LPG production hike.
A critical energy chokepoint, the Strait of Hormuz, was effectively closed on February 28, 2026, due to US and Israeli strikes against Iran. This disruption severely impacts India, as 90% of its Liquefied Petroleum Gas (LPG) imports rely on this vital corridor, leading to widespread shortages.
Commercial establishments like restaurants and hotels are disproportionately affected, with some reporting a 40-50% decrease in cylinder availability. Major Indian cities, including Delhi, Mumbai, and Bengaluru, are experiencing longer waiting times for Indane cylinder deliveries.
The Indian government responded by declaring an emergency to secure energy resources and prioritizing natural gas allocation. Oil companies have been directed to increase LPG production by approximately 10%, ensuring 100% household supply priority. Waiting times for cylinder bookings have been extended to manage demand.
This crisis highlights India's limited energy storage capacity, with only two underground caverns holding about two days of national consumption. Experts suggest diversifying cooking energy sources, noting that electric cooking is becoming more economically attractive compared to LPG.
