India Lifts Commercial LPG Supply Restrictions as Energy Flows Recover

India lifted restrictions on commercial liquefied petroleum gas (LPG) supplies introduced during the Middle East conflict, following improvements in regional energy shipments after disruptions linked to the temporary closure of the Strait of Hormuz.

The Ministry of Petroleum announced late Thursday that supply limits on packaged LPG intended for commercial and non-domestic use have been removed, restoring distribution to levels that existed before the West Asia crisis.

In addition, the government authorized the partial resumption of bulk LPG deliveries, allowing supplies to return at 50% of pre-crisis consumption levels after they had been suspended during the height of the disruption.

Officials attributed the decision to a marked improvement in LPG availability, reflecting the gradual normalization of regional energy markets.

The easing of restrictions follows the reopening of the Strait of Hormuz under an agreement between the United States and Iran, restoring one of the world's most critical energy shipping routes. During the conflict, the temporary closure of the strategic waterway disrupted global oil and gas flows, placing additional pressure on major importing nations, including India.

As the world's most populous country and the second-largest importer of LPG, India relies heavily on shipments from the Middle East. Before the crisis, roughly one-fifth of global oil and gas trade transited through the Strait of Hormuz, making the country particularly vulnerable to supply interruptions.

During the peak of the disruption, New Delhi raised domestic LPG prices to manage supply shortages and ensure fuel availability for households, where LPG remains the primary cooking fuel for millions of families.

To strengthen long-term energy security, the Indian government approved a nearly $4 billion investment plan last month to expand coal gasification projects. The initiative is intended to diversify the country's energy mix and reduce dependence on imported fuels amid heightened geopolitical uncertainty.

Supply disruptions across Gulf shipping routes also weighed on India's economic outlook, increasing energy costs and adding pressure to growth expectations. With maritime traffic returning to normal, authorities have begun rolling back emergency measures while continuing efforts to bolster the country's resilience against future supply shocks.