India Shifts to Kerosene, Coal as Middle East Conflict Disrupts LPG Supply Chains
India Turns to Kerosene, Coal Amid LPG Supply Disruption

India Temporarily Reverts to Kerosene and Alternate Fuels Amid LPG Supply Crisis

India is implementing emergency measures to shift back to kerosene, coal, and biomass for cooking purposes as escalating conflicts in the Middle East severely strain liquefied petroleum gas (LPG) supply chains. This strategic move follows the effective shutdown of the Strait of Hormuz, a critical maritime corridor situated between Iran and Oman that facilitates a substantial portion of global oil and gas shipments.

Geopolitical Tensions Trigger Supply Chain Disruptions

The supply chain crisis has been precipitated by recent military strikes on Iran conducted by the United States and Israel, which prompted retaliatory actions from Iran. These hostilities have significantly disrupted tanker movement throughout the region, creating bottlenecks in energy transportation routes that India heavily depends upon for its energy security.

India's Vulnerability to Strait of Hormuz Disruptions

India finds itself particularly exposed to disruptions in the Strait of Hormuz due to its substantial reliance on this route for energy imports. The nation imports approximately 88% of its crude oil requirements, 50% of its liquefied natural gas (LNG), and 60% of its LPG needs through this critical passageway.

More specifically, over half of India's crude oil imports and around 55% of its cooking gas supplies transit through the Strait of Hormuz. An overwhelming 85–90% of LPG imports originate from Gulf producers including Saudi Arabia, whose export capabilities are entirely dependent on this maritime route.

While India can potentially source crude oil from alternative suppliers such as Russia, replacing LPG cargoes presents a more complex challenge. Major alternative LPG exporters are located much farther away in countries like the United States and Canada, which substantially increases delivery times and logistical complications.

Emergency Measures: The Return of Traditional Fuels

To conserve limited LPG supplies for household consumption, the Indian government has temporarily restricted commercial use of cooking gas, compelling hotels and restaurants to transition to alternate fuel sources. According to official reports, key emergency measures include:

  • Extra Kerosene Allocation: State governments have received an additional 48,000 kilolitres of kerosene specifically designated to support household cooking needs during this crisis period.
  • Alternate Fuels Permitted: Commercial establishments including hotels and restaurants have been authorized to temporarily utilize biomass, refuse-derived fuel pellets, and coal for their cooking requirements.
  • Commercial LPG Capped: Businesses will receive only 20% of their usual LPG demand throughout the duration of the supply disruption.
  • Demand Control Measures: The minimum gap between LPG cylinder refills has been increased to prevent panic buying and ensure more equitable distribution.

The return of kerosene represents a significant policy reversal, as India had spent the previous decade systematically eliminating its use due to serious pollution concerns and issues related to fuel adulteration. Major urban centers including Delhi had already been declared kerosene-free zones, while government initiatives like the Pradhan Mantri Ujjwala Yojana had successfully expanded LPG access to rural households to replace traditional fuels such as firewood and coal.

Petrol and Diesel Supplies Remain Stable

Government officials have confirmed that there is currently no shortage of petrol or diesel within the country. Refineries continue to operate at high utilization rates, with crude supplies being sourced from an expanded network of countries to mitigate regional disruptions.

However, LPG remains under considerable pressure because imports from Gulf suppliers—which typically account for approximately 60% of India's LPG imports—have been severely disrupted by the ongoing regional conflict. Authorities emphasize that the temporary use of kerosene and alternate fuels represents a short-term strategy to manage what they describe as one of the most severe energy supply disruptions in recent decades.

Meanwhile, new LPG cargoes are being arranged from alternative suppliers in Europe and North America to gradually restore normal supply chains and reduce dependence on the volatile Middle Eastern region.