India might see almost 50% slip in LPG imports in March as Iran-US war rages, report says- Grow Mudra

India might see almost 50% slip in LPG imports in March as Iran-US war rages, report says

25 Mar , 2026 By : Debdeep Gupta

India’s liquefied petroleum gas supplies are expected to take a significant hit this month as disruptions in West Asia impact key shipping routes, with imports projected to fall sharply, according to a Reuters report citing traders and ship-tracking data.

Estimates suggest that India could import about 1.190 million metric tonnes of LPG this month, marking a steep 46 percent decline on a daily basis compared to February, data from LSEG indicated.

The drop comes as the Strait of Hormuz, a critical transit point for energy shipments, has remained effectively shut since early March following the conflict involving Iran and strikes by the United States and Israel.

India relies on imports for nearly 60 percent of its LPG consumption, with a large share sourced from Gulf nations such as Saudi Arabia and the United Arab Emirates, which ship fuel through the Strait of Hormuz.

Until late February, the Middle East accounted for roughly 90 percent of India’s seaborne LPG supplies, amounting to 22.7 million metric tonnes last year. However, the sourcing pattern has shifted in recent weeks. So far this month, the share of Gulf exporters has dropped to around 55 percent, while about 40 percent of imports are now coming from the US and Russia, with Argentina making up the remainder.

Despite efforts to diversify, sourcing alternatives presents challenges. Imports from Russia remain limited due to constrained volumes, a shortage of vessels and longer shipping routes from Ust-Luga in the Baltic Sea.

LPG continues to be widely used in India as a fuel for vehicles, heating and petrochemical production, adding to the significance of supply disruptions.

Earlier this month, the government urged consumers to avoid panic buying of LPG cylinders and consider shifting to piped natural gas where feasible.

At the same time, authorities have sought to reassure the public on availability. Domestic refineries have increased LPG output by around 40 percent since the beginning of March.

“There is no shortage of LNG supplies. There is no shortage of LPG. I am repeatedly appealing to all consumers: those who can shift from LPG to PNG should do so immediately,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum & Natural Gas, on March 13.