LPG Shortage in India Live Updates: Pine Gas, Jag Vasant set to cross Strait of Hormuz as more Indian-flagged LPG tankers begin exiting war-hit Gulf corridor

India is grappling with a deepening LPG supply crisis amid escalating geopolitical tensions in West Asia, prompting urgent measures to manage domestic fuel availability. Despite continued imports, including the arrival of LPG tanker Pyxis Pioneer carrying 16,714 tonnes of LPG from the United States and oil tanker Aqua Titan with 96,099 tonnes of Russian crude at New Mangalore Port, concerns over supply disruptions persist. The port, which houses India’s largest underground LPG storage facility with a capacity of 80,000 tonnes, has waived cargo-related charges for LPG and crude oil between March 14 and 31 to facilitate smoother operations.

However, the broader energy landscape remains uncertain due to risks associated with tanker movement through the Strait of Hormuz. Reports of tankers altering routes, including Aqua Titan diverting from China to India, underscore the volatility of global energy supply chains.

Domestically, the crisis is already impacting consumers and businesses. In cities like Kolkata, the food and beverage sector has struggled to cope with LPG shortages, particularly during peak demand periods such as Eid. Many establishments have either switched to electric cooking methods or are in the process of doing so as LPG stocks run low. Meanwhile, demand for alternative fuels like piped natural gas (PNG) has surged significantly, with connections in Pune and Pimpri Chinchwad nearly doubling.

Political tensions have also intensified, with Kerala Chief Minister Pinarayi Vijayan criticising the Centre over rising LPG prices and alleging that government policies are pushing small businesses toward closure. The price hike has placed significant pressure on hotels and small-scale industries reliant on cooking gas.

To address the crisis, the Centre is exploring measures such as reducing the quantity of LPG in domestic cylinders from the standard 14.2 kg to 10 kg or even 7 kg. This move aims to ensure more equitable distribution and prevent shortages, though it may lead to increased refill frequency and operational challenges. Additionally, there are indications that waiting periods for cylinder refills could be extended further.

As India navigates these challenges, balancing supply management with consumer needs and economic stability remains a critical priority.