Rising concerns over India’s LPG supply: Causes, constraints & market implications
GS3Economy · S&T · Environment · Security· External sector, trade & FDI· Prelims + Mains·
Why in news
The Indian government invoked emergency powers to boost domestic LPG production and secure household supplies amid supply disruptions at the Strait of Hormuz.
Background
India imports the majority of its LPG from Middle Eastern countries including Saudi Arabia, Qatar, and the UAE. While shipments from the United States are increasing, they are currently insufficient to offset disruptions at the Strait of Hormuz.
Facts for Prelims
- FactIndia imports the majority of its LPG from the Middle East (Saudi Arabia, Qatar, and UAE).
- PlaceStrait of Hormuz: A key maritime chokepoint affecting LPG supply and global prices.
- FactPiped Natural Gas (PNG) is identified as an alternative fuel source to enhance energy resilience.
For Mains
Q. Discuss the strategic and economic implications of India's heavy reliance on Middle Eastern LPG and suggest measures to enhance energy security.
Dimensions to cover in your answer
- Supply chain vulnerability: High dependence on the Strait of Hormuz creates a single point of failure for energy security.
- Infrastructure gap: Need for expanded domestic storage capacity and transition to Piped Natural Gas (PNG) to reduce LPG volatility.
- Market volatility: Rising freight costs and tighter global availability directly impact domestic inflation and household energy costs.
Keywords: Energy Security · Supply Chain Resilience · Trade Diversification · Strategic Autonomy · Market Volatility
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