How much did LPG imports fall due to Hormuz closure, why demand may fall too

The Strait of Hormuz has been substantially blocked since approximately February 28, 2026, as a consequence of the Iran–US/Israel military conflict, disrupti...

What Happened

The Strait of Hormuz has been substantially blocked since approximately February 28, 2026, as a consequence of the Iran–US/Israel military conflict, disrupting maritime shipping through the world's most critical energy chokepoint.
India, which imports approximately 67% of its LPG requirements with around 90% of those imports transiting through the Strait, faces acute supply stress — LPG imports have fallen sharply since the blockade began.
India's LPG storage capacity stands at roughly 1.2 million tonnes, enough to cover only approximately two weeks of national demand; unlike crude oil, India does not maintain large strategic LPG reserves.
Indian oil marketing companies have directed refineries to increase domestic LPG output by diverting related hydrocarbon streams, and are prioritising household cylinder supply over commercial allocations (restaurants, caterers).
The first India-bound LPG tanker — MT Sarv Shakti, chartered by Indian Oil Corporation — cleared the Strait of Hormuz in mid-April, with arrival expected at Visakhapatnam by May 13, 2026, signalling a partial resumption of flows.
Demand-side pressures are also expected to ease in the near term, as high LPG prices and supply uncertainty push some commercial users toward alternative fuels.

Static Topic Bridges

The Strait of Hormuz: Strategic Geography

The Strait of Hormuz is a narrow waterway located between Iran to the north and Oman and the UAE to the south, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It is the world's most important oil and gas transit chokepoint. At its narrowest, the strait is approximately 33 km (21 miles) wide, with two shipping lanes each about 3.2 km wide. In 2024, an average of approximately 20 million barrels per day of oil and petroleum products transited through the strait — equivalent to about 20% of global petroleum liquids consumption and more than one-quarter of total global seaborne oil trade.

Location: Between Iran (north) and Oman/UAE (south); connects Persian Gulf to Arabian Sea
Width at narrowest: approximately 33 km; two shipping lanes of approximately 3.2 km each
Oil transit (2024): approximately 20 million barrels/day — about 20% of global petroleum consumption
LNG transit: approximately one-fifth of global LNG trade (primarily from Qatar)
Fertiliser transit: up to 30% of internationally traded fertilisers
Alternative pipelines: Saudi Arabia (East-West pipeline, 5 million b/d) and UAE (Abu Dhabi–Fujairah, 1.5 million b/d) can partially bypass, but do not cover LPG flows

Connection to this news: India's LPG import chain runs almost entirely through the Strait, making the blockade a direct and severe supply threat — unlike crude, where Russian pipeline and port alternatives partially buffer India.

India's LPG Dependency and Energy Security

India is the world's second-largest importer of LPG, consuming approximately 31.3 million metric tonnes (MMT) in FY2025. Domestic production meets only about 41% of this demand; the remaining 59% (approximately 18–19 MMT) is imported. LPG is the primary cooking fuel for hundreds of millions of Indian households, particularly following the Pradhan Mantri Ujjwala Yojana (PMUY) which brought LPG connections to over 10 crore Below Poverty Line (BPL) households. The Ujjwala scheme, along with broader LPG penetration, has reduced dependence on solid biomass fuels but has simultaneously increased India's structural import dependency.

India's LPG consumption (FY2025): approximately 31.3 MMT
Domestic production share: approximately 41%
Import dependency: approximately 59%, with ~90% of imports transiting the Strait of Hormuz
PMUY (Pradhan Mantri Ujjwala Yojana): Launched 2016; provided LPG connections to BPL households; over 10 crore connections by 2024
LPG storage buffer: approximately 1.2 million tonnes — roughly two weeks of national demand
Strategic petroleum reserve: India holds approximately 5.33 MMT of crude strategic reserves; no comparable strategic reserve exists for LPG

Connection to this news: The lack of a strategic LPG reserve, combined with near-total import dependence through a single choke point, exposes India to severe supply vulnerability when the Strait is disrupted.

West Asia Conflict and India's Energy Diplomacy

The 2026 West Asia conflict — triggered by US and Israeli military action against Iran beginning in late February 2026 — has restructured India's energy import calculus. India's crude oil imports have been partially redirected to Russian supplies (which route through Arctic or Pacific lanes, avoiding the Strait), but LPG has no equivalent alternative pipeline or shipping route. India has maintained diplomatic engagement with all parties in the conflict, consistent with its strategic autonomy doctrine, while simultaneously activating demand-management measures domestically. The crisis underscores the vulnerability of India's energy security architecture to external geopolitical shocks.

Russia buffer for crude: Russian crude (routed via Cape of Good Hope or other non-Hormuz routes) has partially replaced West Asian crude
LPG has no equivalent Russian or non-Hormuz substitute; Gulf suppliers (Saudi Arabia, UAE, Qatar) dominate India's LPG import basket
India's energy diplomacy: Historically non-aligned; purchases from both US-allied Gulf states and sanctioned/conflicted states
Hormuz Strait crisis 2026: Classified as one of the most severe peacetime disruptions to global energy flows since the 1973 Arab oil embargo

Connection to this news: The crisis illustrates the structural gap in India's energy security — while crude diversification through Russia has provided partial cushion, LPG remains critically exposed, with policy responses limited to demand rationing and refinery diversion.

Key Facts & Data

Strait of Hormuz blockade began: approximately February 28, 2026 (Iran–US/Israel conflict)
India's LPG imports via Hormuz: approximately 90% of all LPG imports
India's LPG consumption (FY2025): approximately 31.3 MMT
Domestic LPG production share: approximately 41%
India's LPG storage buffer: approximately 1.2 million tonnes (~2 weeks of demand)
First India-bound LPG tanker post-blockade: MT Sarv Shakti (chartered by Indian Oil Corporation); expected Visakhapatnam by May 13, 2026
Global oil transit via Hormuz: approximately 20 million barrels/day (~20% of global consumption)
Global LNG transit via Hormuz: approximately one-fifth of world LNG trade
PMUY LPG connections distributed: over 10 crore (as of 2024)
Saudi Arabia alternative pipeline capacity: 5 million b/d (East-West pipeline; for crude, not LPG)
UAE alternative pipeline capacity: 1.5 million b/d (Abu Dhabi–Fujairah; for crude, not LPG)