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West Asia Conflict Shifts India's LPG Imports Sharply Toward United States

Indian Express·2026-09-09· Read original

"West Asia Conflict Shifts India's LPG Imports Sharply Toward United States"

Prelims Facts

  • •The Strait of Hormuz is a narrow waterway connecting the Persian Gulf with the Gulf of Oman; it carries roughly one-fifth of global oil and LNG flows.
  • •India's import dependence: over 88% for crude oil, 60% for LPG, and about 50% for natural gas.
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Key Terms

Strait of Hormuz

Narrow waterway between Iran and Oman; world's most critical energy shipping chokepoint.

LPG (Liquefied Petroleum Gas)

Compressed propane/butane mixture used mainly as household cooking fuel in India.

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Study Note

BackgroundCore Concept

Background

India is one of the world's largest energy importers. The country depends on imports for over 88 per cent of its crude oil needs, about 60 per cent of its LPG (liquefied petroleum gas) needs, and roughly 50 per cent of its natural gas needs. Historically, the Gulf region, principally Saudi Arabia, the UAE, Qatar, and Kuwait, has supplied the bulk of these imports. This concentration made India structurally dependent on a single maritime corridor: the Strait of Hormuz, a narrow waterway between Iran and Oman that connects the Persian Gulf to the Gulf of Oman and the Arabian Sea.

The Strait of Hormuz is the world's most critical energy chokepoint. Roughly one-fifth of global oil and LNG flows pass through it daily. For India specifically, the strait was the transit route for approximately 40 per cent of crude oil imports, 60 per cent of LNG imports, and 90 per cent of LPG imports. This meant the strait effectively carried around 54 per cent of India's total LPG consumption. Partial bypass infrastructure exists, Saudi Arabia's East-West Pipeline and the SUMED pipeline, but neither can substitute for Hormuz at full volume, leaving India acutely exposed to any disruption there.

The United States emerged as a major global LPG and LNG exporter following the shale revolution, which turned it into a net energy exporter. US LPG (primarily propane) was already competitively priced relative to Asian spot supplies even before the current crisis, though the much greater shipping distance from the US Gulf Coast to Indian ports adds significantly to freight costs compared with Gulf suppliers.

The Topic Explained

LPG is used primarily as cooking fuel by Indian households. Over 33 crore households in India hold LPG connections, making uninterrupted supply a social and political priority. LPG is subsidised for household consumers, so any rise in import costs directly increases the fiscal burden on the government. This makes LPG supply disruptions qualitatively different from crude oil disruptions: the government cannot easily pass on higher costs to households without political consequences.

India's LPG import basket was dominated by Gulf suppliers before the current West Asia conflict. The UAE alone accounted for nearly 38 per cent of India's LPG imports in the six months before the conflict began. Qatar, Kuwait, and Saudi Arabia together contributed another 50 per cent. The US supplied less than 8 per cent. This concentration reflected proximity, established long-term contracts, and competitive pricing from Gulf producers. …

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Practice MCQs

Economymedium

Consider the following statements regarding India's energy import dependence and the Strait of Hormuz:

1.Approximately 90% of India's LPG imports transit the Strait of Hormuz.

2.Approximately 60% of India's LNG imports transit the Strait of Hormuz.

3.Approximately 40% of India's crude oil imports transit the Strait of Hormuz.

4.India's overall crude oil import dependence exceeds 88%.

How many of the above statements are correct?

AOnly one
BOnly two
COnly three
DAll four
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Economymedium

Consider the following pairs:

Energy type — India's import dependence level

1.Crude oil — Over 88%

2.LPG — About 60%

3.Natural gas — About 50%

How many of the above pairs are correctly matched?

AOnly one
BOnly two
CAll three
DNone
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Economyhard

With reference to India's LPG supply and distribution, consider the following statements:

1.Over 33 crore households in India hold LPG connections.

2.India's LPG import dependence stands at approximately 60%.

3.LPG is classified as a strategic petroleum reserve commodity under India's SPR framework.

Which of the statements given above is/are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Economyeasy

Which of the following best describes the 'Strait of Hormuz' in the context of global energy trade?

AA waterway connecting the Red Sea to the Mediterranean Sea, critical for European oil imports
BA narrow waterway between Iran and Oman connecting the Persian Gulf to the Gulf of Oman, through which roughly one-fifth of global oil and LNG flows transit
CA canal linking the Gulf of Aden to the Arabian Sea, used primarily for LNG tanker traffic from Qatar
DA waterway between Saudi Arabia and Yemen through which OPEC oil exports are routed to Asian markets
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