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Gas shortage caused by Iran war may push India back to dirtier fuels


What Happened

  • The ongoing West Asia conflict — which has effectively disrupted Strait of Hormuz transit — has created an acute LPG shortage in India, raising fears that millions of households may revert to biomass fuels such as firewood, agricultural residue, and dung cakes.
  • India imports approximately 85–90% of its LPG from the Middle East, with most shipments passing through the Strait of Hormuz; the current disruption has halted roughly 90% of incoming LPG cargoes.
  • Residents across cities have been queuing at gas distribution centers for hours, with some arriving as early as 3 AM to secure a cylinder; panic buying has driven up black market prices.
  • The government has responded by diverting available LPG away from industrial/commercial users (hotels, restaurants, canteens) to prioritize household connections — but quantities remain insufficient.
  • Experts warn that if shortages persist, the poorest households — particularly PMUY (Ujjwala) beneficiaries — will abandon LPG and revert to biomass cooking, undoing a decade of clean energy progress.
  • The fallback to biomass carries severe public health consequences: indoor air pollution from solid fuels causes roughly 500,000 deaths per year in India.

Static Topic Bridges

Indoor Air Pollution and the Biomass Cooking Crisis

Biomass cooking — using firewood, agricultural residue, and dung cakes — was the primary cooking method for a majority of Indian households before LPG penetration. The World Health Organization classifies household air pollution from solid fuel combustion as a major global health risk. Combustion of biomass releases PM2.5, carbon monoxide, nitrogen oxides, and polycyclic aromatic hydrocarbons directly inside living spaces, where women and children spend most of their time.

  • Combustion of 1 kg of dung cake emits 16.26 grams of particulate matter (PM) — the most polluting biomass fuel; agricultural residue emits 7.54 g/kg; firewood emits 4.34 g/kg.
  • Indoor air pollution from biomass cooking causes approximately 500,000 premature deaths per year in India — primarily from respiratory and cardiovascular disease.
  • 51% of active tuberculosis incidence in the 20+ age group is attributable to cooking smoke exposure.
  • Biomass use during pregnancy is associated with a 50% excess risk of stillbirth and a 49% increased risk of low birth weight.
  • Women and young children are most affected, as they spend the most time near cooking fires.
  • India's SDG-7 target (universal access to clean cooking) relies fundamentally on sustained LPG use — any large-scale reversion to biomass is a direct setback.

Connection to this news: If the LPG supply crunch forces poor households back to biomass fuels, the public health and gender costs will fall disproportionately on women and children in rural and peri-urban areas.


Pradhan Mantri Ujjwala Yojana — Gains and Fragility

The PMUY scheme launched in 2016 transformed India's cooking energy landscape by providing over 103 million free LPG connections to BPL women. However, the scheme's success has always been fragile: unlike wealthier households, PMUY beneficiaries have thin financial buffers, use LPG at lower intensity (4.47 refills/year vs the national average of ~8), and are most sensitive to price spikes or supply shortages. The current crisis threatens to reverse these gains rapidly.

  • India has 332.1 million active domestic LPG connections as of January 2026; 104 million are PMUY connections.
  • Average PMUY household consumes only 4.47 refills/year — well below the ~8 refills/year needed for a household to rely primarily on LPG for cooking.
  • Government provides ₹300 targeted subsidy per 14.2 kg cylinder (up to 12 refills/year) to PMUY users.
  • Ujjwala-2.0 (launched 2021) extended coverage to migrants and others not covered in the original scheme.
  • Studies post-PMUY show that physical connection does not guarantee sustained use — affordability and availability are ongoing barriers.

Connection to this news: A prolonged supply shock could prompt a large-scale withdrawal from LPG use among Ujjwala households, erasing the scheme's health and gender gains and reversing India's progress on SDG-7.


Energy Security and the Clean Energy Transition Trade-off

India's energy transition strategy — from biomass to LPG, and eventually to piped natural gas and renewable electricity — is premised on stable and affordable fossil fuel supply in the interim period. The current crisis exposes a structural tension: clean cooking energy for India's poor is almost entirely import-dependent, routed through a single maritime chokepoint. Alternative cooking technologies (electric induction, biogas, piped natural gas) exist but are not yet affordable or universally accessible.

  • India's domestic LPG production covers only ~40% of national consumption; the remaining 60% is imported.
  • In 2024, the Middle East contributed 97% of India's total LPG imports; Qatar alone supplied ~34%.
  • The government has boosted domestic refinery LPG output by ~38% as an emergency measure, but this addresses only a fraction of the gap.
  • Piped natural gas (PNG) coverage is growing but concentrated in urban areas; over 80% of rural households still rely on cylinder LPG.
  • Biogas and electric cooking are viable long-term alternatives but require infrastructure investment at scale.

Connection to this news: The crisis reveals that India's clean cooking transition remains hostage to geopolitical risk — making domestic production scale-up and supply source diversification urgent policy priorities.


Key Facts & Data

  • India imports ~85–90% of LPG from the Middle East; ~90% of imports transit the Strait of Hormuz.
  • ~60% of Indian households use LPG as primary cooking fuel; 332 million active LPG connections, including 104 million PMUY.
  • Biomass cooking causes ~500,000 deaths per year in India from indoor air pollution.
  • Dung cake combustion emits 16.26 g PM per kg — the most polluting common biomass fuel.
  • 51% of tuberculosis incidence (age 20+) linked to cooking smoke exposure.
  • Domestic LPG output boosted by ~38%; India pivoting to US as alternative supplier.
  • Indian crude basket hit US$113.57/barrel as of March 11, 2026.
  • PMUY beneficiaries average only 4.47 LPG refills/year — making them most vulnerable to supply shocks.