New Delhi, March 31, 2026: India is grappling with an unprecedented LPG (Liquid Petroleum Gas) shortage crisis that has disrupted the daily lives of hundreds of millions of households across the country. The crisis, which began in early March 2026, is a direct consequence of the US-Iran war that has effectively closed the Strait of Hormuz — the critical 21-mile maritime chokepoint through which approximately 90% of India’s LPG imports pass. Long queues for gas cylinders, empty distributors, and anxious households have become a common sight across India in recent weeks.

India’s dependence on LPG imports is staggering. Approximately 60% of India’s total LPG demand is met through imports, and over 90% of those imports were routed through the Strait of Hormuz. When the US-Israeli strikes on Iran began on February 28, 2026, Tehran retaliated by effectively closing the Strait to commercial shipping — described by Union Petroleum Minister Hardeep Singh Puri as “the first such closure in recorded history.” The consequences for India were immediate and severe.

The Scale of the Crisis

Within the first two weeks of the Strait’s closure, India’s weekly LPG inflows fell by an estimated 30%. Maritime insurance companies immediately withdrew war-risk coverage or repriced it at levels beyond commercial viability, with premiums on Gulf-region tankers surging over 1,000%. QatarEnergy declared Force Majeure. Saudi Aramco’s loading terminal was disrupted. India’s functional LPG buffer was reduced to roughly 10 days — far below the nominal 25-30 day inventory that had given planners comfort.

Approximately 33 crore Indian households — many added to the gas network under the Pradhan Mantri Ujjwala Yojana scheme that provided free gas connections to poor rural families — found themselves navigating a rapidly tightening supply situation. The irony is particularly sharp for Ujjwala beneficiaries: these families, who previously cooked on wood or dung cakes and had been brought into the clean energy fold through government initiative, now find themselves unable to get cylinders refilled due to a geopolitical conflict thousands of kilometres away.

Government’s Emergency Response

The Indian government has launched a multi-pronged emergency response to address the LPG crisis. On March 7, 2026, the three Oil Marketing Companies (OMCs) — Indian Oil, Bharat Petroleum, and Hindustan Petroleum — raised the price of a 14.2-kg domestic LPG cylinder by Rs 60, bringing it to Rs 913 in Delhi for non-subsidised consumers. This was accompanied by a series of administrative measures:

• The Essential Commodities Act was invoked to regulate commercial LPG distribution and curb hoarding and black-marketing.
• The Ministry of Petroleum and Natural Gas issued the LPG Control Order on March 8, 2026, directing all refineries to maximise LPG yields by channelling C3 and C4 hydrocarbon output into LPG production. The government claims a 28% boost in domestic LPG output from emergency refinery rerouting.
• Emergency procurement was initiated from the US Gulf Coast, with ships being routed around Africa’s Cape of Good Hope to avoid the Strait of Hormuz. Two such ships — Shivalik and Nanda — had already reached India by late March.
• The government allowed an additional 20% allocation of commercial LPG to states to ease the supply crunch for industrial and commercial users.
• The Delivery Authentication Code (DAC) coverage is being expanded from 50% to 90% of consumers to close fraud and diversion loopholes that exacerbate the shortage.

Government’s Position vs Ground Reality

Despite the visible crisis, the government has projected confidence. Petroleum Minister Hardeep Singh Puri stated in Parliament that “household supply is protected” and that average delivery cycle times remain at 2.5 days. He attributed the visible queue surge to “demand distortion, not a production or supply failure,” pointing to panic buying driven by rumours and social media misinformation. The government also firmly rejected viral claims suggesting India has only 5-10 days of oil reserves, stating that India has adequate strategic petroleum reserves to manage the situation. Officials also confirmed that over 58 million tonnes of coal are available with power plants, ensuring electricity supply is unaffected.

However, independent analysts and opposition parties have painted a more worrying picture. Policy researchers at the Takshashila Institution noted that India’s structural vulnerability is “both deep and systemic.” Their analysis shows that while India’s nominal LPG inventory was cited as 25-30 days, the functional buffer — accounting for pipeline delays, bottling plant capacity, and distribution logistics — was actually closer to 10 days when the crisis hit. The LPG crisis has exposed how India’s “just-in-time” import model leaves little room for geopolitical disruptions of this scale.

The PNG Solution: A Long-Term Alternative

Amid the crisis, the government and energy analysts have been pushing for an accelerated transition to Piped Natural Gas (PNG) as a long-term alternative to LPG cylinders. PNG, which is supplied through underground pipeline networks, does not depend on the Gulf shipping routes in the same way. The government has approved Rs 95,692 crore for the Viksit Bharat-G RAM G scheme in the financial year 2026-27, a significant portion of which is earmarked for expanding India’s City Gas Distribution (CGD) network to bring PNG to tier-2 and tier-3 cities and rural areas.

The LPG crisis of 2026 has served as a wake-up call for India’s energy planners. The government has also assured that fertiliser plants, which depend on LPG and natural gas as feedstock, have sufficient supply to meet the needs of the upcoming Kharif agricultural season. A tiered gas supply directive prioritises domestic PNG, CNG transport, LPG production, and fertiliser plants, with non-priority industries receiving 70-80% of normal supply. Finance Minister Nirmala Sitharaman has reassured Parliament that “the fundamentals of the Indian economy remain strong” despite the energy market turbulence.

What Citizens Should Do

For ordinary Indian households, the immediate advice from the government is to avoid panic buying, as hoarding exacerbates the shortage. Consumers are advised to book cylinders through official OMC apps or helplines and avoid purchasing from unauthorised dealers who may be inflating prices. The government’s anti-hoarding measures under the Essential Commodities Act mean that unauthorised dealers can face legal action for profiteering. In the longer term, households with piped natural gas (PNG) connections are unaffected by the LPG cylinder shortage and are being urged to continue normal usage. The LPG crisis is ultimately a consequence of a distant war, but its resolution lies in India’s domestic energy policy choices: diversifying supply sources, building strategic LPG reserves, and accelerating the shift to piped gas and renewable cooking energy.