Indian Oil Restarts Iran LPG Imports After 8-Year Gap Crisis

India has taken a crucial step to ease its growing cooking gas shortage, with Indian Oil Corporation importing liquefied petroleum gas (LPG imports) from Iran for the first time since 2018.

The decision comes at a time when the country is facing energy crisis India due to ongoing tensions in the Middle East. Shipping routes through the Strait of Hormuz — one of the world’s most important energy corridors — have been affected, making it harder for India to secure steady fuel supplies.

Sources say Indian Oil has purchased around 43,000 tonnes of LPG, which includes propane and butane. The cargo will also be shared with other state-run companies like Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited as part of efforts to manage the LPG supply shortage.

However, the quantity highlights the scale of the problem. The shipment is expected to meet barely half a day of India’s total LPG demand, showing how tight the India LPG demand situation has become.

India is one of the largest LPG consumers in the world and depends heavily on imports. Nearly two-thirds of its requirement comes from overseas, with a large share usually sourced from Middle Eastern countries. With current disruptions in the region, authorities have been forced to look at alternative fuel sourcing options.

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The import also signals a cautious revival of India Iran energy trade. India had stopped buying oil and gas from Iran in 2019 after the United States imposed sanctions on Tehran. Now, with limited relaxations and urgent demand, India appears to be reopening that channel, at least on a small scale.

The shipment is likely to arrive at India’s western coast, possibly at Mangalore. Payments are expected to be arranged through non-dollar mechanisms to comply with existing restrictions, highlighting the impact of US sanctions Iran on global trade.

Overall, the move underlines India’s vulnerability to global energy disruption and the need for stronger energy security India measures. As supply pressures continue, the government may need to explore more diverse and flexible sourcing strategies to ensure steady cooking gas supply India for households.