Tag: LPG

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US overtakes Gulf as India’s top gas supplier

The United States has emerged as India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), overtaking traditional Gulf exporters as disruptions in West Asia reshape global energy trade.

The change comes after conflict involving Iran affected shipping routes through the Strait of Hormuz, a key passage for energy supplies from the Gulf. India depends heavily on the route for its LNG and LPG imports, prompting buyers to seek alternative sources as supply uncertainty increased.

According to industry data, US shipments of LNG and LPG to India rose sharply in May. American LNG exports accounted for more than 40 per cent of India’s monthly LNG requirements, while LPG supplies from the US exceeded the combined volumes received from major Gulf suppliers.

Energy analysts say the shift reflects both immediate supply concerns and a broader effort by India to diversify its energy sources. For years, Gulf nations such as Saudi Arabia, Qatar, the UAE and Kuwait dominated India’s gas imports. However, recent geopolitical tensions have highlighted the risks of relying heavily on a single region.

The growing energy partnership between India and the US had already been gaining momentum before the latest disruptions. Indian state-owned refiners signed long-term LPG supply agreements with US producers, helping strengthen trade ties between the two countries.

Experts note that importing gas from the US is generally more expensive than sourcing it from the Gulf because of longer shipping distances. Despite the higher costs, securing reliable supplies has become a priority amid ongoing uncertainty in West Asia.

The development is expected to deepen energy cooperation between New Delhi and Washington while improving India’s energy security. However, analysts believe Gulf countries will remain important suppliers once regional shipping conditions stabilize.

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Domestic LPG prices up by ₹29 per cylinder

The Centre has increased the price of domestic LPG cylinders by ₹29, making cooking gas costlier for consumers across the country. The latest revision comes amid rising international LPG prices and growing financial pressure on state-run oil marketing companies (OMCs).

With the increase, the cost of a domestic LPG cylinder has moved closer to the ₹1,000 mark in several cities. The government said the revision was necessary to address losses incurred by fuel retailers, which have been absorbing a significant portion of the rising cost of supplying cooking gas.

According to official estimates, OMCs are currently facing an under-recovery of nearly ₹700 on every domestic LPG cylinder sold. Despite periodic price revisions, companies have continued to bear losses due to fluctuations in global energy markets and higher import costs.

Government officials said international benchmark LPG prices have risen sharply in recent months, increasing the burden on fuel retailers. They argued that the latest increase is aimed at ensuring the continued availability and distribution of cooking gas while reducing the financial strain on oil companies.

The Centre also noted that domestic LPG prices in India remain relatively lower than those in several other countries. Officials said the government continues to monitor global market trends and will take appropriate decisions based on prevailing economic conditions.

The price hike, however, has drawn criticism from opposition parties and consumer groups. They argue that higher LPG prices add to inflationary pressures and increase the cost of living for households. Consumer advocates have called for measures to protect vulnerable families from the impact of rising fuel prices.

Industry experts say LPG prices are closely linked to global energy markets, making them susceptible to international developments. Any further rise in crude oil and LPG benchmark prices could influence future revisions.

With global energy prices remaining volatile, market observers expect cooking gas prices to remain under scrutiny in the coming months. Consumers and industry stakeholders alike will be watching closely for any further policy measures or pricing changes.

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Government eases LPG rules for PNG shift

The central government has changed LPG rules to make it easier for people to switch from LPG cylinders to piped natural gas (PNG). The move is expected to help consumers shift to piped gas without facing lengthy procedures or extra difficulties.

Under the revised rules, customers who want to move to PNG will find the process simpler than before. The changes are aimed at reducing paperwork and making the transition more convenient.

The decision comes as piped natural gas networks continue to expand across many cities in the country. More households are now getting access to PNG connections, which supply cooking gas directly to homes through pipelines.

Unlike LPG cylinders, PNG does not require users to repeatedly book gas cylinders or wait for deliveries. Many consumers prefer it because of its convenience and continuous supply.

Officials said the rule changes are part of efforts to improve consumer convenience and support the use of cleaner fuel options. The government has also been working to increase the use of natural gas as part of India’s broader energy plans.

The revised rules could particularly help people who delayed switching because of concerns related to paperwork or existing LPG connections.

However, LPG cylinders are expected to continue playing an important role, especially in rural and remote areas where piped gas services are not yet available.

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Government to sustain ₹12.2 lakh cr capex amid fiscal stress

The government has admitted that it is under growing fiscal pressure due to global uncertainties, especially disruptions linked to the ongoing situation in West Asia. Rising import costs, energy market volatility, and subsidy demands have added strain to the public finances. But despite this, officials say one thing will not change: infrastructure spending will stay on track.

Senior officials in the Finance Ministry have confirmed that India will stick to its planned capital expenditure of around ₹12.2 lakh crore this financial year. This money is earmarked for building and upgrading roads, railways, ports, airports, and urban infrastructure projects across the country.

Expenditure Secretary V. Vualnam said the fiscal situation is “tight but manageable,” adding that while the government is feeling the pressure, it does not intend to slow down investment spending that directly supports growth. In simple terms, the Centre is choosing to protect long-term development spending even if short-term costs rise.

One of the key pressure points is energy imports, especially LPG. India imports a large share of its LPG requirement, and much of it is transported through the Strait of Hormuz, a route affected by tensions in West Asia. This has raised shipping risks and increased costs, adding to the government’s subsidy burden.

Even with these challenges, officials say cutting back on capital expenditure is not an option. Infrastructure projects are seen as critical for job creation, economic activity, and private investment. As a result, the government has decided to prioritise capex over other types of spending.

At the same time, the Centre is keeping a close watch on overall fiscal management. While non-essential revenue spending may be adjusted if needed, the focus remains on ensuring that infrastructure projects do not slow down or face delays due to budget constraints.

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Commercial LPG price hiked by ₹993 to ₹3,071 in Delhi

The price of the 19-kg commercial LPG cylinder has been increased by ₹993 with effect from May 1, 2026, raising the cost in Delhi to ₹3,071.50. The revision marks a significant upward movement in fuel prices used by commercial establishments such as hotels, restaurants, bakeries, and small businesses.

Oil marketing companies implemented the hike across the country, with similar increases seen in other major cities. The sharp revision is expected to raise operating costs for businesses that depend heavily on LPG for cooking and heating purposes.

Despite the steep rise in commercial cylinder prices, there has been no change in domestic LPG rates. The 14.2-kg household cylinder continues to remain at its existing price level, offering relief to consumers amid volatile energy markets.

Officials and industry sources link the price hike to global energy disruptions and rising international fuel costs, influenced by ongoing geopolitical tensions. These factors have pushed up import prices for LPG, leading to higher retail rates in the commercial segment.

This is one of the most notable single-day increases in recent months and adds pressure on the hospitality and food service sectors, which may eventually pass on the higher costs to customers.

However, the government has kept domestic LPG prices unchanged in an effort to shield households from inflationary pressure, even as commercial fuel rates continue to fluctuate with global market trends.

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India’s crude imports fall 17% amid Hormuz crisis

India’s crude oil imports fell sharply by nearly 17% in March compared to previous levels, as tensions in the Middle East and disruptions around the Strait of Hormuz continued to affect global energy flows. The decline reflects reduced shipments from key Gulf suppliers amid ongoing geopolitical uncertainty.

According to official and shipping data, the slowdown in crude inflows has been driven by instability in the region, where a large share of India’s energy imports originate. The Strait of Hormuz, one of the world’s most important oil shipping routes, has seen repeated interruptions due to the Iran conflict, forcing several tankers to reroute or wait for clearance.

The situation has also raised concerns over supplies of LPG and LNG, which are heavily dependent on the same route. Reports indicate that nearly 90% of India’s LPG imports and more than half of its LNG imports pass through the Strait of Hormuz, making them vulnerable to any blockade or conflict-related disruption.

The latest developments suggest that Iran has reportedly tightened control over the passage at different points during the ongoing conflict, leading to uncertainty for tankers carrying crude oil, cooking gas and industrial fuels bound for India. Several ships are said to be stuck in the region or operating under delayed schedules.

Despite these challenges, government sources have said that India’s fuel supply remains stable for now, with strategic reserves and diversified import sources helping cushion the impact. Refineries continue to operate at high capacity, and efforts are underway to secure alternative shipping routes and suppliers where possible.

However, analysts warn that prolonged disruption in the Strait of Hormuz could push global oil prices higher and increase India’s import bill, as the country depends on overseas supplies for most of its crude oil needs. Even small changes in supply flows from the Gulf can have a direct impact on domestic fuel prices and inflation.

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Households should switch to piped natural gas supply

The Ministry of Petroleum and Natural Gas has issued a clear directive: households in areas where piped natural gas (PNG) is available must transition from LPG cylinders within three months, or risk losing their LPG supply.

The move aims to optimize LPG distribution, freeing cylinders for regions without pipelines, while offering households a safer, hassle-free cooking option. PNG delivers gas directly to kitchens, removing the need for repeated refills and making cooking more convenient.

Exceptions are possible if a household cannot physically receive a pipeline connection, in which case authorities can issue a no-objection certificate (NOC) to continue LPG supply. The government is also speeding up pipeline approvals, easing land access, and expanding infrastructure to ensure the transition is smooth.

Officials emphasize that there is no shortage of LPG, petrol, or diesel, but the policy reflects a broader strategy to strengthen India’s energy security, particularly amid global supply disruptions linked to tensions in the Middle East.

Residents in pipeline-connected areas are urged to apply for PNG connections promptly or provide proof of technical infeasibility to avoid disruption. This step marks a significant push toward modernizing India’s gas network and building a more resilient, efficient energy system for the future.

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3 lakh metric tonne LPG stuck at Strait of Hormuz

Nearly 3 lakh metric tonnes (MT) of liquefied petroleum gas (LPG) are currently stranded in the Strait of Hormuz on six Indian‑flagged vessels, the Ministry of Ports, Shipping and Waterways has confirmed. The strait, a narrow but strategically crucial waterway connecting the Persian Gulf to the Arabian Sea, is a vital route for global energy shipments. Rising geopolitical tensions in the Gulf have severely disrupted maritime traffic, complicating deliveries of LPG destined for India.

In total, 22 Indian ships are affected in and around the strait, but six LPG carriers hold the largest share of stranded cargo—around 3 lakh MT collectively. Each LPG vessel generally carries 45,000‑50,000 MT, primarily for domestic industrial and household consumption. These delays are causing a temporary slowdown in LPG deliveries to India’s ports, though authorities are coordinating closely with port operators to manage the backlog.

Some relief has come from a few vessels that successfully navigated the strait under careful monitoring. The tanker Nanda Devi, carrying 46,500 MT of LPG, reached Vadinar at Kandla Port, where unloading operations have commenced. Another vessel, Shivalik, had earlier docked at Mundra Port, helping ease the pressure on domestic supply chains. Government sources said that storage and transshipment arrangements are being made to accommodate delayed cargo and minimize disruption.

The situation highlights broader energy security challenges for India, which relies heavily on Middle East imports for LPG and other fuels. Shipping companies are also facing operational hurdles, including high freight rates and fewer available vessels for long-haul shipments. The Ministry has emphasized that operations at central‑government‑owned ports continue, with active support to ensure cargo movement wherever possible.

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LPG crisis sparks illegal cylinder sales

Fears of a shortage of cooking gas have led to panic buying in many areas, giving rise to black-market sales of LPG cylinders at very high prices.

Reports show that some illegal sellers are charging up to ₹6,500 for an LPG cylinder. In other cases, people are paying between ₹3,500 and ₹4,000 just to refill a cylinder. This is much higher than the normal price, which is usually around ₹900 to ₹1,000.

Investigations have found that some dealers are illegally diverting cylinders from authorised supply chains and selling them secretly to customers who cannot get gas through regular channels. These illegal sellers often operate from small shops such as stove-repair centres or grocery stores. In some places, they refill cylinders in hidden setups to avoid being caught.

The problem has worsened because many people are worried about possible supply disruptions. India depends heavily on imported LPG, and concerns about global tensions and supply issues have caused people to book extra cylinders or store them at home. This sudden increase in demand has made it easier for black-market traders to take advantage of the situation.

Officials say selling LPG cylinders outside authorised distribution systems is illegal. It violates rules under the Essential Commodities Act and the Liquefied Petroleum Gas Regulation Order. Authorities have warned that strict action will be taken against those involved in hoarding or selling cylinders illegally.

Despite increased monitoring, black-market traders are still managing to operate by selling cylinders only to known customers or through personal contacts. This makes it harder for law-enforcement agencies to track them.

Meanwhile, government officials have urged people not to panic and avoid booking extra cylinders unnecessarily. They said steps are being taken to increase LPG production and ensure proper distribution.

Refineries have already increased LPG output, and authorities are trying to ensure that cooking gas reaches households and essential services first. Officials have also asked the public to report any suspected black-marketing so that action can be taken quickly.

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LPG fears spark rush for induction cooktops

Concerns about a possible LPG shortage in parts of India have triggered a rush for induction cooktops, with many models quickly selling out on online quick-commerce platforms. As worries about cooking gas availability spread, many households are buying electric cooktops as a backup option.

Several quick-delivery platforms, including Blinkit, Swiggy’s Instamart and Zepto, have reported a sharp increase in orders for induction stoves. In many cities, including Delhi, Mumbai, Bengaluru and Chennai, customers found that most induction cooktops were already out of stock or available only in limited numbers.

Retailers say the sudden demand began after news of LPG supply concerns began circulating. Many families rushed to buy induction stoves so they would have an alternative way to cook if gas cylinders became difficult to get.

Electronics store owners also reported a surge in walk-in customers looking for induction cooktops. Some shops said they sold several days’ worth of stock in just a few hours as people hurried to secure the appliances.

The surge in demand has not been limited to the cooktops themselves. Utensils designed for induction cooking, such as compatible steel pans and pots, have also seen a spike in sales and are running low in many stores.

The LPG supply concerns are linked to global energy market uncertainties and geopolitical tensions affecting fuel supply chains. These developments have raised fears that cooking gas availability could be affected if the situation worsens.

Restaurants and small food businesses have also been watching the situation closely. Some eateries have started exploring electric cooking equipment to avoid disruptions if LPG supply becomes limited.

Meanwhile, government officials have urged the public not to panic. Authorities say they are monitoring the situation and taking steps to ensure there is enough LPG supply in the country.

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