{"id":"f-73cd9b4b27-89e1cb0a-6333-584a-b2a6-f10ec802e2a4","title":"US, Israel-Iran war squeezes LPG supply to India as government curbs commercial cylinders","description":"The Iran war and disruption at the Strait of Hormuz are beginning to hit India’s LPG supply chain. The government has tightened distribution, restricted commercial cylinders, and prioritised household cooking gas.","timestamp":1772796538,"category":"national_v_two","headline":"US, Israel-Iran war squeezes LPG supply to India as government curbs commercial cylinders","modifiedHeadline":"Iran-Israel war may disrupt India's LPG supply","subCategories":["scid_2c0dc4ac"],"subcategoriesName":["Economics News"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"389","iabCategoryName":"War and Conflicts","fcSummary":"the israel-iran conflict is impacting india's cooking gas supply, prompting government measures to prioritize domestic consumption. oil refineries are instructed to maximize lpg production and reserve propane/butane for household use, diverting them from industrial applications. disruptions through the strait of hormuz are causing supply concerns, affecting commercial users and potentially petrochemical production.","summary":"Israel-Iran conflict disrupts India's LPG supply. Govt prioritizes household gas, curbs commercial cylinders amid Strait of Hormuz concern.","ctaUrl":"https://trends.glance.com/newz/astrology/IN/en/news9/f-73cd9b4b27-89e1cb0a-6333-584a-b2a6-f10ec802e2a4","sourceUrl":"https://www.news9live.com/india/us-israel-iran-war-squeezes-lpg-supply-to-india-as-government-curbs-commercial-cylinders-2939871","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/u6jeIDXNGuR0.webp","content":"

New Delhi: The escalating conflict between Israel-US and Iran is beginning to have a tangible impact on India’s cooking gas supply. So much so that the

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ongoing war has prompted pre-emptive emergency measures by the government to safeguard gas for domestic consumption.

Officials have instructed oil refineries to increase production of liquefied petroleum gas (LPG) and ensure that propane and butane are reserved strictly for domestic supply. Propane and butane are the key components used to produce household cooking gas.

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Israel-Iran war hits India’s LPG supply chain

State-run oil marketing companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have been told not to divert propane or butane for petrochemical production or other downstream industrial uses. Under the Essential Commodities Act, all available LPG must now be supplied exclusively to household consumers.

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The directive follows disruptions to LPG shipments passing through the Strait of Hormuz — a narrow passage that is vital for the transportation of oil and gas supplies globally, considered one of the world’s most critical energy chokepoints. Several LPG cargo vessels have reportedly been unable to transit the route over the past five days, raising fears of a tightening supply.

Some industry analysts have warned that India’s buffer stock, designed to cover roughly ten days of demand, is close to being exhausted.

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Commercial supply curtailed as authorities prioritise households

The tightening supply situation has already begun affecting distributors on the ground.

Gas dealers linked to BPCL and HPCL in Maharashtra’s Pune district have reportedly been instructed not to accept new orders for commercial LPG cylinders. Similar directives have been issued to dealers across Nagpur and the wider Vidarbha region.

Authorities have introduced a 21-day waiting period between two deliveries of domestic LPG cylinders for household consumers. At the same time, new connections for commercial cylinders have been halted, and all discounts on commercial gas have been withdrawn.

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These restrictions are expected to place pressure on hotels, restaurants and small industries that rely heavily on LPG.

Heavy reliance on Middle East imports raises vulnerability

India remains highly dependent on LPG imports, particularly from the Middle East. In 2025, the region accounted for nearly 90 per cent of India’s LPG imports, equivalent to more than 21 million tonnes.

Around 95 per cent of these supplies pass through the Strait of Hormuz, making India particularly vulnerable to disruptions caused by conflict in the Gulf.

Limited storage capacity at Indian terminals also restricts the country’s ability to build large stockpiles, leaving the market exposed when shipments slow down.

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Petrochemical production may also face disruption

The government’s directive to prioritise cooking gas could also affect petrochemical production. Companies, including ONGC Petro Additions Limited (OPaL) have already reported production disruptions at their Dahej facility due to supply issues linked to the ongoing conflict.

Industry participants warn that plants operated by Indian Oil, HMEL and GAIL could face similar pressures if the crisis continues. If the war persists in the Gulf region, analysts fear that India’s LPG and petrochemical sectors could face deeper supply constraints in the weeks ahead.

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US, Israel-Iran war squeezes LPG supply to India as government curbs commercial cylinders

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