Context:
The Iran-West Asia conflict has disrupted supplies through the Strait of Hormuz, severely impacting India’s LPG imports and energy security.
Key Highlights:
Supply Disruption & Dependency:
• India imports ~60% of LPG, with ~90% routed via Strait of Hormuz
• Conflict has caused major supply bottlenecks and shortages
Government Response:
• Priority given to household LPG consumption
• Reduced supply to commercial and industrial sectors
• Increased waiting time for LPG cylinders
Domestic Adjustments:
• Domestic LPG production increased by ~30%, but meets only 10–12% demand
• Diversion of propane and butane from petrochemical industry
• Activation of alternative fuels (kerosene, biomass, coal)
Natural Gas Stress:
• Around 30% natural gas supply affected
• Prioritized for PNG (households), CNG (transport), LPG production
Energy Security Dynamics:
• Crude oil less affected due to diversified imports (e.g., Russia)
• Highlights vulnerability of gas-based energy supply chains
Relevant Prelims Points:
• Strait of Hormuz: Critical chokepoint for global oil and gas trade
• LPG: Mixture of propane and butane used for cooking/heating
• PNG: Pipeline-based natural gas supply
• CNG: Compressed natural gas used as vehicle fuel
Relevant Mains Points:
• Energy Security Challenges:
- Overdependence on imported LPG and gas
- Vulnerability to geopolitical conflicts
- Economic Impact:
- Supply shortages affecting industries and commercial establishments
- Increased subsidy burden and logistics costs
- Policy & Governance Issues:
- Need for strategic reserves of LPG and gas
- Limited diversification of LPG import routes
- Way Forward:
- Diversify energy import sources and routes
- Promote domestic production and alternative fuels
- Expand renewable energy and electrification (e-cooking)
- Strengthen strategic petroleum and gas reserves
UPSC Relevance:
• GS 3: Energy Security, Economy
• GS 2: International Relations (West Asia), Governance