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Global LPG Supply Recovery May Take 3–4 Years Amid War Damage & Uncertainty

Global LPG Supply Recovery May Take 3–4 Years Amid War Damage & Uncertainty

Restoring global LPG (liquefied petroleum gas) supply chains could take 3 to 4 years, as the full extent of damage to production and infrastructure remains unclear, according to a senior government official.

The disruption is mainly due to the ongoing West Asia conflict, which has impacted key energy routes like the Strait of Hormuz, a crucial channel for global fuel transport. India, which depends on imports for nearly 60% of its LPG consumption, is particularly vulnerable to these disruptions.

Earlier, almost 90% of India’s LPG imports came through the Gulf region, but supply routes have now been disrupted, forcing diversification and increasing costs.

Even with alternative sourcing, supply gaps may remain significant, with disruptions estimated at 40–50%, leading to higher prices and pressure on consumers. Additionally, India currently has limited storage capacity, covering only about 15 days of demand, which adds to the risk.

Overall, the LPG crisis highlights India’s heavy dependence on imports and the urgent need for long-term energy security solutions.

Do you think India should reduce LPG dependence and shift faster towards alternative energy sources?

This news is for information only and is not investment advice. Please do your own research before making investment decisions.