India LPG Consumption Falls Seventeen Percent in Early March
Indian fuel retailers saw a 17.3% drop in LPG sales in early March. Shipping disruptions in the Strait of Hormuz have stranded tankers and limited supplies.
India is experiencing its most severe liquefied petroleum gas (LPG) crisis in decades as state fuel retailers reported a significant drop in sales during the first half of March. Preliminary data indicates that consumption of the fuel, which is primarily used for cooking, was hampered by major shipping disruptions in the Strait of Hormuz following the outbreak of conflict involving Iran, the United States, and Israel.
The nation's primary fuel retailers, including Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum Corp, sold approximately 1.15 million metric tons of LPG in the first fifteen days of March. This figure represents a 17.3% decrease compared to the same period last year and a sharp 26.3% decline from the first half of February. The supply chain strain is particularly acute because India relies on the Middle East for roughly 90% of its LPG imports.
Maritime traffic through the Strait of Hormuz has reached a near standstill since the initiation of air strikes. Tehran has largely halted movement through the waterway, which typically accounts for 20% of global oil and seaborne liquefied natural gas (LNG) supplies. While Iran has stated it will block supplies destined for the U.S. or its allies, Indian officials have been seeking exemptions to maintain energy security.
The federal shipping ministry has confirmed that the logistical bottleneck has left numerous vessels unable to navigate the region.
India has 22 tankers, including six LPG ships, four crude carriers and one liquefied natural gas vessel, stranded in the Strait of Hormuz.
In response to the dwindling reserves, the federal government has implemented measures to prioritize domestic consumers. Supplies of LPG to industrial sectors have been reduced to ensure that households do not face a total shortage of cooking gas.
The energy crunch is also affecting the aviation sector. Sales of jet fuel by the three major state retailers fell to 327,900 tons in the first half of March. This marks a 12.3% reduction from the previous month and a 4% decline year-over-year.
