25% of India’s gas imports hit by Strait of Hormuz disruption; government reroutes energy supplies as West Asia conflict escalates

India’s natural gas supply has taken a significant hit due to geopolitical tensions in West Asia, disrupting energy flows. Government officials said nearly a quarter of the country’s natural gas requirements have been affected after foreign suppliers invoked force majeure due to the ongoing conflict in the region. Addressing a briefing on Wednesday, Sujata Sharma, joint secretary in the petroleum and natural gas ministry, said the disruption has impacted a large portion of imported gas supplies.

“Our total consumption [of natural gas] per day currently is about 189 million metric standard cubic metres a day (MMSCMD). Out of this, around 97.5 MMSCMD is produced domestically, and the rest is imported. Out of the imports, about 47.4 MMSCMD is affected due to force majeure conditions,” Sharma said. To mitigate the disruption, India has started sourcing gas through alternative routes and suppliers. Sharma said two LNG cargoes procured from new sources are currently on their way to the country. The situation has been aggravated by disruptions in the Strait of Hormuz, through which nearly half of India’s oil imports normally pass. The waterway has effectively been shut by Iran following the escalation of its conflict with Israel and the United States.

Despite the challenges, the government said crude oil supplies remain stable due to diversification of import sources.

India’s daily crude consumption is about 5.5 million barrels, with imports coming from around 40 countries. According to Sharma, diversification has reduced dependence on the Strait of Hormuz. “Through diversified procurement, the volumes we have secured today exceed what would normally have arrived through the Strait of Hormuz during this period,” Sharma said. Oil marketing companies have increased procurement from alternate routes, significantly shifting the country’s import pattern.

Also Read: Iranian-linked hackers suspected in cyberattack on Stryker’s Cork headquarters

“As a result of this diversification, about 70% of our crude imports are now coming from routes outside the Strait of Hormuz, compared with about 55% earlier,” Sharma added. Two additional crude cargoes are expected to reach India within the next few days. Refineries are also operating at peak capacity, with some running above 100% utilisation to maintain supply levels. To ensure adequate availability of cooking fuel and gas for priority sectors, the government invoked the Essential Commodities Act on March 9.

India imports about 60% of its liquefied petroleum gas (LPG) requirements, and around 90% of these imports normally pass through the Strait of Hormuz. On March 8, authorities directed domestic refineries to increase LPG production to compensate for the disruption. According to Sharma, the measures have raised domestic LPG output by about 25%, helping meet household demand.

For non-domestic LPG supplies, priority is being given to hospitals and educational institutions. A three-member committee of senior officials from state-run oil marketing companies has been formed to review LPG allocations to restaurants, hotels, and other commercial users. The panel is consulting state governments and industry bodies to ensure the available supplies are distributed in a “fair and transparent” manner.

Under the revised allocation plan, the tea industry and commercial users connected to the gas grid will receive about 80% of their average supply over the past six months. Meanwhile, refineries and petrochemical units will see supply cuts of around 35% so that “higher priority sectors can be protected”. The government has also stepped in to shield consumers from the full impact of rising LPG prices.

“The current price of a domestic LPG cylinder in Delhi is ₹913, and this is after an increase of ₹60. Without intervention, the market price would have been much higher,” Sharma said. She added that the government has approved compensation of ₹30,000 crore for oil marketing companies to cover under-recoveries on LPG sales. Authorities are also working to prevent panic buying and hoarding of cooking gas. Officials from oil marketing companies and anti-adulteration cells are coordinating with local administrations to counter misinformation and ensure uninterrupted delivery.

Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations, and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos, and videos.