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China Bound LPG Tanker Diverted To India As Hormuz Crisis Forces Delhi To Tap Iran LPG Again

TOI.in / Mar 26, 2026, 12.27 PM IST

India’s energy strategy is undergoing a sharp pivot as it buys LPG from Iran for the first time since 2019, driven by disruptions in the Strait of Hormuz. In a dramatic twist, the tanker carrying the cargo was initially headed to China before being diverted, underlining the volatility in global supply chains. The purchase comes under a temporary sanctions waiver, allowing India to act within a limited timeframe without breaching restrictions. With domestic demand surging and imports covering a major share of consumption, the country is facing a severe supply crunch. Authorities have already cut industrial allocations to protect household fuel needs. As shipments from traditional suppliers face delays, India is balancing multiple options, including increased Russian imports. The cautious re-entry into Iranian energy signals a pragmatic shift where flexibility and survival are driving decisions in a complex geopolitical landscape shaped by conflict and uncertainty.

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