How did the Strait of Hormuz closure affect India’s LPG access?

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Strait of Hormuz Closure Significantly Impacted India's LPG Access

The closure of the Strait of Hormuz, a critical chokepoint for global energy transit, directly affected India's access to Liquefied Petroleum Gas (LPG) supplies. As the world's second-largest importer of LPG, with a substantial portion originating from the Middle East, India experienced significant disruptions to its energy imports when this vital waterway was shut following the outbreak of the US-Iran war in late February.
Disruption of Essential Energy Supplies

India relies heavily on LPG for domestic cooking, making it a primary fuel for millions of households. The closure of the Strait of Hormuz, through which approximately one-fifth of global oil and gas typically passes, severely hampered the flow of these essential energy supplies into the country. This disruption not only created immediate supply shortages but also put considerable pressure on India's economy, casting a shadow over its growth forecasts.
Imposition and Subsequent Removal of Restrictions

In response to the supply crisis, the Indian government had imposed restrictions on commercial LPG. Specifically, the supply of bulk LPG was suspended, and limitations were placed on "non-domestic packed LPG." These measures were implemented to manage the dwindling availability of the fuel during the period of transit difficulties.
Restoration of Supply Levels

The situation began to improve following an agreement between Iran and the United States, which led to the reopening of the Strait of Hormuz and a subsequent enhancement of energy cargo movement. Consequently, India has now lifted the restrictions on commercial LPG. Supplies of "non-domestic packed LPG" have been restored to their pre-crisis levels, while the suspended bulk LPG supply has been relaxed to 50 percent of its pre-crisis consumption levels.
Economic Pressures and Price Adjustments

During the period of LPG supply disruptions, the Indian government had also resorted to raising the prices of LPG. This increase in the cost of a primary cooking fuel added to the economic pressures faced by households. The broader supply disruptions through the Gulf routes further exacerbated these economic challenges, impacting overall market stability and contributing to uncertainty in growth projections.

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How did the Strait of Hormuz closure affect India’s LPG access?

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