LPG Supply Under Pressure Amid Iran War, Companies Reviewing Situation Daily to Maintain Distribution
New Delhi, March 13: India’s liquefied petroleum gas (LPG) supply chain is facing logistical pressures amid global tensions linked to the Iran conflict, but companies say efforts are underway to maintain smooth distribution across the country.
Oil marketing companies and LPG suppliers are closely monitoring the situation as disruptions in international shipping and refinery operations begin to impact imports. Confidence Petroleum India Limited (CPIL) has said it is reviewing the supply position on a daily basis to ensure uninterrupted availability for dealers and consumers.
Global Conflict Begins Affecting LPG Logistics
The ongoing geopolitical tensions have created significant challenges for LPG imports and maritime transport, according to industry officials.
Speaking to IANS, Nitin Khara, Chairman and Managing Director of CPIL, said the company has intensified its monitoring of supply conditions.
“Every morning, we assess how to ensure gas supply for that day. Dealers from across the country keep calling throughout the day, and we try our best to ensure timely delivery,” Khara said.
While distribution continues, he acknowledged that limited availability and logistical hurdles have started to affect the supply cycle.
LPG Vessels Stranded Near Ports
One of the key disruptions currently affecting LPG supply is the delay of cargo vessels near ports.
Khara said two LPG ships carrying cargo are currently stranded near sea ports, unable to either enter or leave due to operational challenges.
This delay has disrupted the company’s regular import cycle. Under normal conditions, CPIL imports approximately 40,000 metric tonnes of LPG every month.
The situation has forced companies to re-evaluate distribution strategies in order to prevent supply shortages in the domestic market.
Shipment Initially Meant for International Delivery
According to Khara, one shipment was originally planned to be split between domestic supply and an international commitment.
The company intended to unload around 850 metric tonnes of LPG in India, while the remaining quantity was expected to be supplied to Equinor’s Malaysian operations, part of the Norway-based energy firm’s global network.
Although there was no formal sale-purchase agreement, Khara said the company typically honours such commitments as part of its commercial arrangements.
However, the situation has since evolved due to requests from domestic LPG dealers.
Government and Dealers Request Domestic Allocation
Dealers across India have reportedly urged the company to retain the available LPG cargo for domestic distribution instead of exporting it.
Khara said state governments have also recommended unloading the cargo locally to strengthen the domestic supply chain.
“Considering these requests, we are evaluating the possibility of utilising the available LPG within the country to provide relief to domestic consumers,” he said.
If the shipment is redirected for local consumption, it could boost LPG availability for an additional 12 to 13 days, providing temporary stability in the market.
Industry Warns Supply Chain Recovery May Take Months
Energy industry experts say the ongoing geopolitical conflict has already begun affecting LPG production, refining capacity, and global shipping availability.
Refinery disruptions and the shortage of LPG carrier vessels have compounded the problem.
Khara cautioned that even if the geopolitical situation improves quickly, restoring the global LPG supply chain could take several months.
“Even if the situation normalises immediately, it could take nearly four months for the entire supply chain to stabilise due to refinery damage, limited production and vessel shortages,” he said.
Why It Matters
India relies heavily on LPG for household cooking fuel and industrial usage, making supply stability critical for millions of consumers.
Any disruption in imports can potentially affect:
- Domestic cooking gas availability
- Dealer distribution networks
- Logistics and pricing in the energy market
With global tensions impacting maritime trade routes and production capacity, energy companies are now focusing on short-term supply adjustments to avoid shortages.
Our Final Thoughts
While the global conflict has begun to affect LPG logistics, industry leaders say companies are taking proactive steps to keep India’s supply chain stable. The next few weeks will be crucial as energy firms balance international commitments with domestic demand while monitoring geopolitical developments closely.