What Happened
- The Central Government increased kerosene allocation to states by 48,000 kilolitres per quarter to support low-income households hit by the LPG supply squeeze triggered by disruptions in the Strait of Hormuz.
- The Ministry of Environment, Forest and Climate Change directed State Pollution Control Boards to temporarily permit the hospitality sector — hotels and restaurants — to use biomass, kerosene, Refuse Derived Fuel (RDF) pellets, and coal as alternate cooking fuels for a month.
- The policy response is a direct consequence of the West Asia conflict that began in February 2026, which effectively restricted shipping through the Strait of Hormuz, through which 90% of India's LPG imports normally transit.
- The government prioritised household cooking gas (domestic LPG cylinders) and rationed commercial LPG supplies to prevent hoarding and black-marketing.
Static Topic Bridges
India's LPG Supply Chain and Import Dependency
India is the world's second-largest LPG consumer. Domestic production meets only about 40% of demand, making imports essential to sustaining the cooking fuel supply for over 320 million households connected under the Pradhan Mantri Ujjwala Yojana and other schemes.
- In 2024–25, India produced approximately 13 million tonnes of LPG while consuming around 31 million tonnes — a gap of 18 million tonnes met entirely by imports.
- About 60% of LPG demand is import-dependent, up from 47% in 2015, reflecting rapidly rising domestic consumption.
- Approximately 90% of LPG imports are routed through the Strait of Hormuz; major suppliers include Saudi Arabia, Qatar, and the UAE.
- India has only two underground LPG storage caverns — at Mangaluru and Visakhapatnam — with a combined capacity of about 1.4 lakh tonnes, insufficient to cover even half a month's requirement.
Connection to this news: The structural import dependency and limited storage made India acutely vulnerable once Strait of Hormuz shipping was disrupted, forcing an emergency resort to alternative fuels.
Energy Transition and Clean Cooking Fuels
India's clean cooking fuel drive, anchored by the Ujjwala Yojana (launched 2016), shifted hundreds of millions of households from traditional biomass and kerosene to LPG. This news reverses that trajectory temporarily, raising environmental and health concerns.
- Pradhan Mantri Ujjwala Yojana (PMUY) has provided free LPG connections to over 100 million below-poverty-line households as of 2025.
- Biomass burning and kerosene use are associated with indoor air pollution and are a significant cause of respiratory disease among women and children — WHO classifies solid fuel smoke as a major health hazard.
- Refuse Derived Fuel (RDF) pellets are produced from municipal solid waste; their combustion can release toxic pollutants if unsorted waste is used.
- India's National Clean Air Programme (NCAP) targets a 40% reduction in PM2.5 and PM10 levels by 2026 — temporary reversion to solid fuels risks reversing air quality gains.
Connection to this news: The government's emergency permission for biomass, coal, and kerosene use in commercial kitchens represents a temporary rollback of clean cooking goals, highlighting the tension between energy security and environmental protection.
Strategic Energy Reserves and National Energy Security Policy
India maintains strategic petroleum reserves (SPR) for crude oil but has far more limited strategic reserves for LPG and other refined products, exposing gaps in energy security architecture.
- India's Strategic Petroleum Reserves are managed by the Indian Strategic Petroleum Reserves Limited (ISPRL) at three locations: Visakhapatnam, Mangaluru, and Padur — combined crude capacity of about 5.33 million tonnes.
- These reserves cover roughly 9–12 days of crude import requirements; the government has stated a 60-day operational reserve across refineries and pipelines.
- Unlike crude oil, LPG cannot easily be stockpiled in large volumes due to storage infrastructure constraints.
- Hydrocarbon Vision 2030 and the National Gas Grid policy envision greater diversification toward piped natural gas (PNG) to reduce LPG dependency.
Connection to this news: The crisis exposed India's lack of long-term LPG storage and strategic buffers, underlining the need to accelerate PNG expansion and domestic storage infrastructure.
Key Facts & Data
- India's LPG consumption: ~31 million tonnes per year (2024–25); domestic production: ~13 million tonnes.
- Kerosene allocation increase: 48,000 kilolitres per quarter to states via the Public Distribution System.
- Alternative fuels permitted: biomass, kerosene, RDF pellets, coal — for hospitality sector only, for one month.
- Strait of Hormuz: ~20 million barrels/day of oil transits through it; approximately 20% of global oil consumption.
- Ujjwala Yojana beneficiaries: over 100 million households as of 2025.
- Two LPG underground storage caverns: Mangaluru and Visakhapatnam; combined capacity ~1.4 lakh tonnes.