There is no shortage of LPG in India, as confirmed by Sujata Sharma, Joint Secretary of the Petroleum and Natural Gas Ministry. Sharma addressed concerns over potential disruptions, stating that the recent surge in LPG bookings is driven by panic rather than an actual shortage. She highlighted that despite the closure of the Strait of Hormuz for commercial shipping, alternative routes have ensured a smooth flow of imports, maintaining a comfortable crude oil supply situation.
The official emphasized that hospitals and educational institutions are being prioritized for commercial LPG supply. Additionally, the Environment Ministry has recommended temporary fuel substitutions like biomass, kerosene, and coal to alleviate pressure on LPG demand and ensure energy availability during this period of uncertainty. India, which consumes a significant amount of crude oil daily, has secured supplies beyond the usual volumes from the Strait of Hormuz through diversified sourcing strategies.
With approximately 70% of crude oil imports now arriving through non-Hormuz routes, India has significantly reduced its reliance on the strait. The country’s structural diversification in crude sourcing, expanded over the years through consistent policy decisions, has provided flexibility that many other nations lack. Notably, Indian refineries are operating at high capacity, with some even surpassing 100%, according to government reports.
