LPG Supply Crisis Escalates as Ships Remain Stranded in Strait of Hormuz
In a significant development impacting energy supplies across South Asia, two vessels chartered by Nagpur-based Confidence Petroleum, carrying over 11,200 metric tonnes of liquefied petroleum gas (LPG), have been stranded at the Strait of Hormuz for 15 days. This disruption is a direct consequence of the ongoing West Asia conflict, which has severely hampered maritime traffic in the region.
Company Chairman Confirms Critical Situation
Nitin Khara, Chairman of Confidence Petroleum, confirmed the situation to The Times of India, highlighting the grave implications for domestic and international LPG markets. The company, which imports more than 40,000 metric tonnes of LPG monthly, is recognized as India's largest private-sector LPG player in terms of scale. It supplies both cooking gas and auto-LPG, with operations extending to exports to neighboring countries like Sri Lanka and Bangladesh.
Government Directive Halts Exports, Prioritizes Domestic Needs
While one vessel with over 11,000 metric tonnes of LPG has successfully reached Jaigad Port in Ratnagiri, Maharashtra, state authorities and the Ministry of Petroleum have issued a directive. Confidence Petroleum must now unload the entire stock within India and cease all exports. This marks a shift from the company's initial plan to partially unload for domestic use and export the remainder.
"Stopping exports would affect consumers in Sri Lanka and Bangladesh too, though meeting domestic needs is the first priority now," stated sources within the company. This decision underscores the urgency of addressing India's internal supply shortages amid the geopolitical turmoil.
Impending Stock Depletion and Broader Industry Impact
Khara warned that if the current situation persists, existing LPG stocks may last only about a week. Confidence Petroleum fills nearly 14 lakh LPG cylinders each month, making it the largest private player by cylinder volume. The company also operates more than 300 auto-LPG filling stations nationwide.
The crisis is not isolated to Confidence Petroleum. Other auto-LPG suppliers are facing acute shortages, with many already depleting their stocks. This has intensified pressure on Confidence's outlets, which still maintain some supply. Sources indicate that the export ban from Indian ports is likely to apply to other private-sector companies as well, further tightening the market.
Commercial Sector Strain and Hotel Industry Concerns
Unlike public sector oil marketing companies, private players are not restricted from supplying cooking gas to commercial entities. This has led to a surge in demand from hoteliers, who are turning to private companies for LPG cylinders. In a notable incident, the CEO of a major food delivery app contacted Confidence Group, expressing deep concern that hotel closures could jeopardize the livelihoods of thousands of delivery personnel across the country.
Manas Agro Navigates Supply Challenges
Manas Agro, another key private player in the LPG sector marketing under the Purti brand, is also navigating this crisis. Sources describe the company as "doing a tightrope" but note it has managed to cater to existing customers. Manas Agro primarily supplies LPG to the commercial sector, with a focus on supporting hotels, especially smaller establishments, to prevent shutdowns.
Unlike Confidence Petroleum, Manas Agro relies more on third-party purchases of bulk LPG within India rather than direct imports, which may offer some buffer against international supply disruptions. However, the overall industry remains under severe strain as the West Asia conflict continues to threaten global energy logistics.
