LPG Crisis: A Challenge That Can Make India Stronger

The US–Israel attack on Iran has left its impact not only in the Middle East but also in regions across the globe. The ongoing tensions in West Asia have once again exposed how vulnerable India is to global energy disruptions. The threat of a blockade in the Strait of Hormuz — a key route for oil and LPG supply — has triggered a sharp crisis. Since a large portion of India’s LPG imports passes through this route, even a small disruption has a direct impact on daily life

This war has escalated into a full-scale LPG crisis, worsening the situation due to threats of a Hormuz blockade by Iran. This strategic choke point, with a 32 km wide passage, is responsible for nearly 25% of global oil supply and close to 20% of global liquefied petroleum gas (LPG), i.e., nearly 11.5 billion cubic feet per day.

Today, LPG is not a luxury but a basic necessity for millions of Indian households. From urban kitchens to rural homes, the country heavily depends on this fuel. But with nearly 60% of LPG being imported, India remains highly exposed to global shocks.

As of now, India has around 32.2 million active domestic LPG connections and over 10.4 million PMUY (Pradhan Mantri Ujjwala Yojana) connections, indicating widespread dependence on LPG for household cooking. Hence, LPG has become a basic necessity for Indian households.

India’s Massive Energy Bill

India spends a huge amount every year on importing crude oil and LPG:

• FY 2024–25: ₹11.8 lakh crore ($143 billion)
• April–November 2025: ₹7.3 lakh crore ($80.9 billion), 12% lower YoY
• 2025 Estimate: ₹10.5 – ₹11.2 lakh crore ($125 – $135 billion)

This clearly shows how dependent India is on external energy sources.

 

A Crisis Felt in Every Home

The LPG shortage is now visible across the country. Consumers are facing refill delays, while black marketing has pushed prices to ₹2000–₹3000 per cylinder.

Hotels, hostels, and small food businesses are shutting down or increasing prices. This has triggered a wider social impact.

Students and aspirants living in hostels or rented rooms are struggling to get regular meals. Many depend on mess services, which are now disrupted, affecting their studies and daily routine.

Food delivery workers are losing income as restaurant orders drop. At the same time, cooks, helpers, waiters, and cleaners are facing job losses due to closures in the food service sector.

What started as an LPG shortage is now turning into a food and employment crisis.

 

Why India Needs to Rethink

Many European and Asian countries also depend on crude oil and LPG imports. However, the key difference lies in how they are preparing for alternatives.

India’s neighbour China has significantly reduced this dependency. Nearly 50% of its vehicles are electric, which has helped cut fuel dependence by almost half. In contrast, India still has only 4–5% electric vehicles on the road.

The reasons are clear — lack of charging infrastructure, higher costs, and low consumer confidence. Because of this, people continue to rely on petrol, diesel, and CNG.

But imagine if India had China-like EV infrastructure and adoption. The current energy crisis would have been far less severe. Transport costs would not have increased so sharply, and the overall impact on inflation and the economy would have been much lower.

Alternative Energy Sources India Should Think About

India must now seriously invest in alternative energy solutions:

Biogas and Gobar Gas:
Gobar gas plants were introduced in India in the 1980s and were widely used in villages through cow dung-based systems. Earlier, most rural households had cattle, which supported such systems. However, with mechanization, the number of cattle has declined, and now cows are mostly kept for milk production.

Today, gobar gas is again becoming relevant. If villages and panchayats set up small biogas plants and process gas for commercial use, even transporting it in cylinders, it can benefit both rural and urban populations. It can also create employment opportunities for farmers and help India move towards energy self-reliance.

Urban Biogas from Waste:
Biogas can also be produced from vegetable and organic waste in cities. This is a practical solution for urban areas, and several successful examples already exist in India.

Electric Cooking (Induction):
Promoting induction cooktops can reduce LPG demand, especially in cities.

Compressed Biogas (CBG):
Expanding CBG plants can turn waste into fuel and support clean energy goals.

Electric Vehicles (EVs):
Faster adoption of EVs can reduce dependence on petrol and diesel.

Renewable Energy Mix:
India must expand solar, wind, and bioenergy for long-term stability.

 

A Lesson India should not Ignore

This crisis shows that no country can become fully developed without energy security. Dependence on imports makes the economy vulnerable.

If the same level of investment that goes into short-term welfare or freebies had been directed earlier towards energy infrastructure, alternative fuels, and technology, India might not have faced such a severe impact today.

India must act now — not just to manage the current LPG crisis, but to build a self-reliant and resilient energy future. But this responsibility does not lie with the government alone.

Simply expecting the government to solve everything while we remain passive will not change the situation. Real change will come when individuals also take responsibility.

If every household begins to think about its own energy security — by adopting alternatives, reducing dependency, and making smarter choices — India can move towards energy self-reliance within the next few years.