US-Iran Conflict: The LPG Cylinder as a Symbol of Middle East Turmoil’s Effects on India
The price of tea has risen to 15 rupees at a stall outside the Noida Sector 16A metro station, reflecting a broader crisis affecting daily life across India. Vendors attribute the increase to soaring cooking gas prices, a situation exacerbated by the ongoing conflict in the Middle East. As energy shipments are disrupted and global oil prices rise, many Indian households, restaurants, and businesses are grappling with shortages of liquefied petroleum gas (LPG), leading to panic buying and black market activities.
Global Conflict and LPG Disruption
The current LPG crisis in India is closely tied to escalating tensions in the Middle East, particularly involving Iran, the United States, and Israel. The conflict has disrupted shipping routes through the Strait of Hormuz, a vital passage for global oil and LPG supplies. This narrow waterway is responsible for transporting approximately one-fifth of the world’s oil and a significant portion of LPG shipments. Consequently, any instability in this region has immediate repercussions on global energy markets, resulting in increased LPG prices and supply uncertainties in India, which heavily relies on imports for its cooking gas needs. Reports indicate that India imports nearly 60% of its LPG, with about 90% of these shipments passing through the Strait of Hormuz. This dependency means that geopolitical disruptions in the Gulf can directly impact LPG availability across the country.
India’s Growing Dependence on LPG Imports
India’s reliance on LPG imports has surged in recent years, driven by rising domestic demand that has outstripped local production. LPG is primarily produced as a byproduct of crude oil refining and natural gas processing. While India has increased its imports of crude oil and liquefied natural gas (LNG), LPG imports have seen the most significant growth. From 1998-99 to 2024-25, LPG imports skyrocketed from 1,722 thousand metric tonnes to 20,667 thousand metric tonnes, marking a nearly twelve-fold increase. This shift highlights a crucial change in India’s energy landscape, with LPG’s share of total petroleum product imports rising from 7.2% to around 40% over the same period. The gap between domestic production and consumption further emphasizes this dependence, as India consumed 29.7 million tonnes of LPG in FY24 while producing only 12.8 million tonnes. Projections for FY25 indicate a continued reliance on imports, with consumption expected to rise to 31.3 million tonnes.
Impact on Households and Businesses
As of March 16, 2026, the price of a domestic 14.2 kg LPG cylinder in New Delhi has increased to Rs 913, up from Rs 853. Prices vary across major cities, with Kolkata at Rs 939, Mumbai at Rs 912.50, and Hyderabad reaching Rs 965. While these rates apply to domestic cylinders, the availability of LPG has become a more pressing issue. Reports indicate that commercial LPG cylinders are being sold on the black market for nearly double their normal price, severely impacting small businesses. Many restaurants and food stalls have reduced operations or shut down entirely due to the LPG shortage, leading to job losses and reduced wages for workers in the hospitality sector. Industrial facilities that rely on LPG for various processes are also struggling to maintain operations, further exacerbating the economic strain.
Panic Buying and Government Response
The LPG shortage has triggered widespread panic buying, overwhelming booking systems across several cities. Consumers have reported technical failures when attempting to book cylinders online, forcing many to visit gas agency offices in person. Long queues have become a common sight outside LPG outlets in cities like Delhi, Gurgaon, and Mumbai. Government officials maintain that there is no significant shortage of fuel, asserting that crude oil inventories are sufficient and refineries are operating at full capacity. However, they have advised consumers to use LPG judiciously and consider alternative cooking methods. Authorities are also taking measures to prevent hoarding and black marketing, with state governments conducting raids to ensure fair distribution. As the situation evolves, the impact of the Middle East conflict continues to resonate through India’s kitchens and businesses, highlighting the interconnectedness of global events and local realities.
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