How the war in West Asia exposes India’s LPG dependence, Pg9

Key Highlights:

• The conflict in West Asia is impacting India's LPG supply, which is heavily dependent on imports from that region.
• Domestic LPG prices increased by ₹60 per cylinder on March 7, following a rise in Brent crude prices to nearly $120 a barrel.
• The Ministry of Petroleum and Natural Gas has directed domestic oil refining companies to maximize LPG production for domestic consumers.
• India's LPG imports have surged in recent years, with Qatar, UAE, and Kuwait being the largest suppliers in 2025.

Detailed Insights:

• India's LPG consumption has risen significantly due to increased adoption of cleaner cooking fuels, driven by initiatives like the Pradhan Mantri Ujjwala Yojana.
• The government has claimed that LPG coverage has increased to nearly 100% of households, up from 62% in 2016.
• The Union Budget recently cut LPG subsidy allocation by 27%, from ₹15,121 crore to ₹11,085 crore, potentially impacting affordability for consumers.
• Disruption of the Strait of Hormuz, a critical energy shipping route, poses a significant threat to India's LPG imports, as a large share of global oil and gas shipments pass through it.
• India's LNG imports have also been increasing, with half of it coming from Qatar, raising concerns about supply disruptions due to the conflict.

Strait of Hormuz

Key Concepts Involved:

• LPG (Liquefied Petroleum Gas): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.
• Brent Crude: A major benchmark price for purchases of oil worldwide, sourced from the North Sea.
• Pradhan Mantri Ujjwala Yojana: A government scheme providing subsidized LPG connections to women from below poverty line (BPL) households.