LPG supply to India has improved with opening of Hormuz waterway and backlog reduced to 3.1 days. However, petrol, diesel and LPG prices are unlikely to come down immediately due to huge under-recovery by state-owned oil companies.
LPG Supply India: After the hope of a peace agreement between Iran and America became strong, there has been great news of relief at the global level and especially for India. The long-closed strategically vital Strait of Hormuz has reopened. A direct positive impact of these global developments is being seen on India’s energy sector. A big relief for the general public has been announced by the central government that now the backlog of LPG cooking gas in the country has reduced to just 3.1 days.
According to the Ministry of Petroleum, the supply of petrol, diesel, LPG and natural gas across the country is now completely normal. All the retail outlets and gas agencies in all the states of the country are functioning smoothly without any hitch.
Shortage removed from gas agencies: Ministry of Petroleum
Giving official information in this matter, Sujata Sharma, Joint Secretary, Ministry of Petroleum has clarified that now there is no shortage of LPG cylinders in any part of the country or at any gas agency. As the supply chain is back on track, consumers will get cooking gas on time.
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Biggest question: Will petrol, diesel and LPG become cheaper?
With the opening of the Strait of Hormuz, supplies have returned to normal, but the biggest question on the minds of the general public right now is whether the wartime fuel prices will be reduced.
However, figures released by the ministry do not point to any immediate price reduction at present. According to Joint Secretary Sujata Sharma, due to prolonged instability in the international market, the state-owned oil companies have suffered huge financial losses, which are yet to be compensated. Oil companies are still facing huge under-recovery, according to ministry figures:
- LPG Cylinder: Even now, companies are under-recovering ₹700 per LPG cylinder.
- Diesel: Oil companies are suffering a loss of ₹27 per liter of diesel.
- Petrol: An under-recovery of ₹ 3 per liter of petrol also continues.
These figures make it clear that even with past price hikes, the state-owned oil companies’ losses are still far from over, so the prospect of a big drop in prices anytime soon seems unlikely.
India’s dependence on global markets and crisis management
India is heavily dependent on global markets and imports for its energy needs. Statistically speaking, India’s approximate requirement is:
- 85% crude oil
- 50% LNG
- 60% of LPG is imported from abroad.
A very large part of these imports used to come to India via the Strait of Hormuz via the Middle East. The war that broke out in the Middle East on 28 February 2026 completely disrupted the global supply chain during the last 108 days.
A leading strategy of the Government of India
The Government of India was very active in fighting this 108 days of horrible crisis. The Ministry of Petroleum, along with the oil companies, immediately changed the sources of imports. Despite the closure of the Hormuz route, alternative new markets were found and stocks were ordered from there, due to which the country averted a major fuel crisis and today the situation has returned to normal.
