India has acquired its first shipment of Iranian liquefied petroleum gas (LPG) in nearly eight years, a move prompted by a dire shortage of cooking fuel caused by disruptions to shipments through the Strait of Hormuz. The war in the Middle East has effectively blocked this critical waterway, through which approximately 90% of India's LPG imports, which constitute about two-thirds of its total demand, normally pass. This initial cargo, estimated at 43,000 tons of butane and propane, is insufficient to meet even a full day's demand in India, where LPG is a primary cooking fuel, but it marks a significant step.
This purchase, made from a trader and paid for in rupees, is the first instance of India buying energy from Iran since the U.S. issued a temporary waiver earlier this month, allowing such transactions despite previous harsh sanctions. The cargo is set to be shared among India's three state-owned fuel retailers: Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp. Ship-tracking data from Kpler indicates the LPG carrier Sea Bird is transporting the Iranian LPG and is expected to arrive at India's Mangalore port, though its transponder signals had previously been turned off after it initially indicated a destination of China.
The widespread LPG shortages in India have severely impacted households, with reports of people resorting to cooking with firewood and even fights breaking out in queues for LPG cylinders. New Delhi has responded by curbing supplies to commercial users and accelerating natural gas pipeline development. Meanwhile, concerns about maritime safety in the Strait of Hormuz persist, with India actively working to secure the passage of its stranded LPG carriers. Several vessels, including Shivalik, Nanda Devi, Pine Gas, and Jag Vasant, have safely transited the strait, carrying a combined total of around 92,000 tonnes of LPG.
