Impact of Iran–Israel Conflict on Global Energy Supply and LPG Availability: A Growing Concern

The ongoing Iran–Israel conflict has led to disruptions in the supply of several essential commodities, including crude oil and liquefied petroleum gas (LPG). While the scarcity of crude oil has been somewhat mitigated through increased procurement from Russia, the LPG supply chain continues to face challenges. A significant portion of global LPG originates from the Middle East, and due to the conflict, several vessels have been delayed or stranded near the Strait of Hormuz.
Diplomatic efforts by India have helped ensure that vessels carrying crude oil and LPG have reached Indian ports safely. However, the intensification of the conflict, including attacks on oil fields and major gas hubs such as those in Qatar, has contributed to rising gas prices in European markets.
The situation highlights the importance of demand and supply dynamics in the LPG sector. In India, the government had earlier phased out kerosene quotas, encouraging consumers to shift to cleaner cooking fuels like LPG. Over time, many households transitioned from coal and wood to LPG for cooking purposes. However, with declining imports and increasing demand, concerns about future LPG availability are emerging.
In response, the Petroleum Ministry has reportedly directed a reduction in the supply of commercial LPG cylinders to industrial and non-essential uses. As a result, some consumers are exploring alternatives such as induction-based cooking, which could lead to increased electricity demand if LPG shortages persist.
The impact of prolonged geopolitical tensions on the global economy and energy sector remains uncertain. While LPG bookings currently operate with a waiting period of around 25 days after cylinder delivery, panic-driven demand could further strain supply chains and lead to shortages.
It is essential for consumers to avoid panic and use LPG judiciously. Policymakers may also consider measures to stabilize supply, while encouraging efficient and balanced energy consumption until global supply conditions improve.
Authored by:
Rajat Kumar Mohindru
Journalist,
Jalandhar City
(Views are personal)