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Informist, Wednesday, Apr. 15, 2026

 

By Anand JC

 

MUMBAI – The import of liquefied petroleum gas by India is set to increase roughly 7% on month in April after recording a 43% drop in March, but it will still be well below the level before the military conflict in West Asia began on Feb. 28, with the warring countries failing to break the deadlock on ship movement through the Strait of Hormuz. The US is likely to retain its spot as India's top LPG source, and supplies from war-torn Iran may rise considerably, according to a forecast by maritime intelligence firm Kpler.

 

These projections are based on voyage routes updated by ships when cargoes are loaded and are subject to change as the routes become clearer closer to the ships' destinations. India imported 523,000 tonnes of LPG in the first fortnight of April, data show. For April as a whole, the country is projected to import 1.24 million tonnes of LPG.

 

In March, India had imported 1.16 million tonnes of LPG, down 43% on month. While LPG imports may be higher on month in April, they are still down 40% from February's level.

 

Analysts expect tightness in crude oil supply to persist in the coming fortnight at least, if the situation does not improve. "These are very volatile times; it is right now very difficult to say if the second half of April will be any better," Nikhil Dubey, senior research analyst looking at refining and modelling at Kpler, told Informist. "Assuming that the countries do decide on an end to the war anytime soon, the jerk to the supply chain will take some time to be fixed."

 

Import of LPG from top suppliers such as Qatar, Saudi Arabia, and Kuwait remains much lower than historical standards as the movement of ships through the Strait of Hormuz has been severely restricted since the war broke out. With global supplies of LPG in flux, Indian companies are relying partly on spot bookings to fulfil their requirements. These supplies are delivered in 7-10 days after booking. Imports help India meet 60% of its LPG needs, and almost all of the imports have traditionally flowed through the Strait of Hormuz.

 

India has imported 142,000 tonnes of LPG from the US and 141,000 tonnes from the United Arab Emirates in April so far, as the two countries have remained New Delhi's top LPG sources. India's imports from the US for the entirety of April are expected to be 418,000 tonnes, slightly higher than 411,000 tonnes imported in March.

 

Indian companies have bought 43,000 tonnes of LPG from Iran so far in April. This is already higher than the 11,000 tonnes procured from Iran in all of March. Data suggest that roughly 36,000 tonnes more of Iranian LPG are en route to India. Indian firms lapped up supply from Iran after the US lifted sanctions on Iranian oil shipments at sea as it sought to ease supply pressures.

 

While India imported some quantities of LPG from Iraq, Oman, Bahrain, Bangladesh, Malaysia, and Russia in March, it has not imported any LPG from these countries so far in April. However, that is likely to change for some of these countries as orders may be fulfilled in the following days.

 

The US and Israel together began an aerial bombardment of Iran on Feb. 28, in a war that continued for more than a month before Iran and the US announced a two-week ceasefire. However, the two countries are yet to reach an understanding on multiple aspects, including Israel's military attacks in Lebanon. Iran says halting Israeli attacks in Lebanon was part of the ceasefire, a claim contested by Washington and Tel Aviv.

 

Additionally, talks in Islamabad between Iran and the US stalled over the weekend as the two parties could not find common ground. The US has since imposed a military blockade on ship movement through the Strait of Hormuz, through which 20% of global energy flowed before the war. However, a US-sanctioned ship of Chinese origin named Rich Starry passed through the crucial chokepoint Monday. The medium-range tanker carried 251,000 barrels of methanol.

 

The Centre last week acknowledged that the fall in imports of LPG in March remains a matter of concern. "Yes, our liquefied petroleum gas imports have been affected badly due to the situation in West Asia, and it is definitely a cause of worry," Sujata Sharma, joint secretary at the Ministry of Petroleum and Natural Gas, had said at an inter-ministerial press briefing on Apr. 6. "The government has responded by taking certain measures, including ramping up the production of LPG domestically." However, there is a limit beyond which domestic production cannot be increased, she had said.  End

 

Edited by Rajeev Pai

 

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