India lifts LPG supply curbs after Hormuz route reopens

India lifts LPG supply curbs after Hormuz route reopens

Online Desk

Published: 2026-06-26 14:39:30

India has lifted restrictions on liquefied petroleum gas (LPG) supplies introduced during the Middle East conflict, easing pressure on fuel availability after shipping through the Strait of Hormuz resumed.

The Ministry of Petroleum announced late on Thursday that restrictions on non-domestic packed LPG had been removed, restoring supplies to levels seen before the West Asia crisis. The decision follows an improvement in fuel availability after energy shipments resumed through the Strait of Hormuz, one of the world's most important oil and gas trade routes.

The ministry said supplies of bulk LPG, which were suspended when the crisis began, would also resume at 50 per cent of pre-crisis consumption levels.

"The restoration follows the recent improvement in the LPG supply situation," the ministry said.

India, the world's most populous country, is the second-largest importer of LPG, with much of its supply sourced from the Middle East. Around one-fifth of global oil and gas trade normally passes through the Strait of Hormuz, which was closed after the outbreak of the US-Iran war in late February, disrupting energy flows and raising concerns over fuel security.

The reopening of the strategic waterway followed an agreement between Iran and the United States that included restoring maritime access through the strait, improving regional energy supply and reducing pressure on global fuel markets.

During the disruption, the Indian government increased LPG prices as supplies tightened. Liquefied petroleum gas is the primary cooking fuel for millions of households across the country, making stable imports critical for domestic energy security and inflation management.

The supply disruption also weighed on India's economic outlook by increasing uncertainty over fuel availability and import costs, adding pressure to growth forecasts.

Last month, the government approved a plan worth nearly US$4 billion to expand coal gasification capacity. The programme aims to produce cleaner fuel from domestic coal resources, strengthen long-term energy security and reduce dependence on imported energy during periods of global market disruption.

The easing of LPG supply restrictions signals improving conditions in regional energy markets and reflects the importance of secure maritime trade routes such as the Strait of Hormuz to India's fuel imports, energy policy and broader economic stability.