SPECIAL REPORT: How India’s Kitchens Hit by Global LPG Supply Collapse Amid Middle East Conflict
Babushahi Network Bureau
Chandigarh, March 12, 2026: As the conflict between the US, Israel, and Iran intensifies, the ripples are being felt directly in Indian kitchens. With international supply chains disrupted, India is facing a significant shortage of Liquefied Petroleum Gas (LPG), leaving the government scrambling to manage a dwindling 10-day buffer stock.
? The Scale of Dependency
India’s reliance on cooking gas is massive, making any disruption a national concern:
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Annual Demand: India requires 33 million metric tons of LPG every year.
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Daily Consumption: This translates to roughly 6.4 million cylinders used every single day.
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The Gap: India imports 60% of its total LPG requirement. Only 40% is produced domestically.
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Usage Split: 88% of gas goes to households, while 12% powers commercial sectors like hotels and industries.
? Why the Supply is Stalling
The primary bottleneck is the Strait of Hormuz, a vital maritime chokepoint for fuel coming from the UAE, Qatar, Saudi Arabia, and Kuwait.
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Traffic Collapse: Before the war, an average of 153 ships passed through the Strait daily; that number has plummeted to just 13.
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Indians at Risk: Currently, 28 Indian-flagged vessels are in the Persian Gulf region, with over 100 Indian sailors positioned directly at the Strait of Hormuz.
? What exactly is LPG?
To understand the crisis, it’s important to know what we are losing. LPG is a mixture of Propane and Butane.
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How it's made: It is a by-product of crude oil refining.
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Safety Fact: LPG is naturally odorless and colorless. The distinct "gas smell" is actually a chemical called Ethyl Mercaptan, added specifically so leaks can be detected to prevent accidents.
⚖️ Government Emergency Measures
With only 10 days of buffer stock remaining, the Indian government has entered crisis mode:
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Essential Commodities Act (1955): This has been invoked to strictly prohibit the hoarding of cylinders.
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Production Hike: The Petroleum Ministry has directed all government and private refineries (including Reliance, IOCL, BPCL, and HPCL) to ramp up production. Domestic output has already seen a 25% increase.
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Prioritization: Supply is being prioritized for essential domestic use to ensure kitchens keep running.
While domestic refineries are working overtime, the 60% import gap remains a massive challenge. If the Strait of Hormuz remains blocked, India may face tougher rationing in the weeks to come.