As the war in Iran continues, India's government is depending on its refineries to weather a severe cooking gas shortage while simultaneously searching the globe for new suppliers and encouraging people to choose other options.
Nevertheless, the nation has failed to find enough supply to meet pre-crisis demand due to cargoes of liquefied petroleum gas stuck in the Persian Gulf, revealing a serious energy vulnerability that will drive up prices and drive out some customers completely.
Since the strikes on Iran started in February, India has increased domestic production by more than a fifth, reaching roughly 46,000 tonnes per day. According to the oil ministry, it will increase to 50,000 tonnes once Nayara Energy Ltd.'s refinery resumes operations in May following a period of maintenance.

According to persons familiar with the situation, refiners have also secured an additional 650,000 tonnes of supplies for May, or about 21,000 tonnes per day, including record levels from the US. Since the matter is private, they requested not to be identified.
Sujata Sharma, joint secretary in the oil ministry, stated on Thursday that "India has been facing challenges in LPG but the government has taken several steps." "Enough cargoes have been secured."
That total, however, is still well below the 100,000 tons that India — the world’s second-largest consumer of LPG — consumed daily before the crisis.Over the past two months, a historic energy crisis has spread throughout Asia, with nations finding it difficult to cope with shortages of oil, LPG, and LNG as well as rising costs.
In order to safeguard families, India has reduced supplies to the commercial sector to 70% of normal levels and mandated state refiners to maximise production of low-margin LPG at all costs. Refill times for LPG cylinders have increased. In addition to encouraging more people to transition to piped gas, which is produced domestically, the government has loosened environmental regulations to permit coal and kerosene.

However, despite years of government efforts encouraging people to switch to LPG cylinders as a greener alternative to biomass, change remains sluggish. There are already 334 million LPG users, and 10,000 new piped gas connections are installed every day. At slightly over 17 million, that is a mere 3% increase since the start of the conflict.
According to Sumit Ritolia, lead analyst at Kpler, "India is likely to face tight LPG supply through May." Although at a higher price from now on, imports may move to the Atlantic Basin and other non-Middle Eastern sources, aiding in the normalisation of supply chains. Normalisation is anticipated to begin in June when supply chains stabilise.

According to persons familiar with the situation, state refiners Indian Oil Corp. and Bharat Petroleum Corp. recently bought spot cargoes from the US for loading in May and June. Certain ships are being rerouted from Hormuz itineraries to loadings in the United States. According to Kpler data, the US would export a record 471,000 tonnes of LPG to India this month.
The economy as a whole is feeling the effects of the crunch. Hotplate sales have increased while restaurant menus have been reduced. Due to the escalating cost of living, labourers on New Delhi's outskirts staged violent protests earlier this month. Some migrant workers have departed for their countryside because they cannot afford the expense of cooking in the city.The government reported this week that police had carried out about 150,000 raids, arrested 255 people, and fined nearly 300 distributors as a result of panic buying and price gouging, which have made the situation worse.
Following bilateral talks with Tehran, India was able to transport eight LPG boats through Hormuz. According to the individuals, it is currently looking for DV Sarv Shakti, SYMI, and Gaschem Erica to safely leave.
However, transits via the waterway are currently at a standstill due to a US blockade and two Iranian shooting incidents in a single week.