New Delhi: India has temporarily reintroduced kerosene for household use and permitted the use of coal and other alternate fuels for hotels and restaurants as the escalating West Asia crisis disrupts the country’s energy supply chains.
The move comes after the conflict effectively shut the Strait of Hormuz, through which a large share of India’s crude oil, LPG and LNG imports normally pass.
Why is India facing fuel supply pressure?
The Strait of Hormuz – a narrow passage of water between Iran and Oman – is one of the world’s most critical energy transit routes. The 21-mile-wide choke point, where shipping lanes for incoming and outgoing traffic are restricted to just 2 miles wide each, separated by a 2-mile buffer zone, is the only sea exit for oil- and gas- producing countries, such as Saudi Arabia, Kuwait, Iran, Iraq, Qatar and the United Arab Emirates (UAE).The narrow, 50-mile-long passage that connects the Gulf with the Arabian Sea carries about a fifth of the world’s oil and liquefied natural gas (LNG).
India imports roughly 88 per cent of its crude oil, 50 per cent of its LNG needs and 60 per cent of its LPG requirement, most of which transits through the strait.
The widening conflict in West Asia, which began on February 28 when the United States and Israel carried out strikes on Iran, followed by retaliatory attacks from Tehran, has stopped energy flows through the strait.
For India, the route is particularly important:
*More than half of India’s crude oil imports pass through the strait.*About 55 per cent of LPG supplies used for cooking arrive through the route.*Nearly 30 per cent of LNG imports also move through the corridor.India consumed 31.3 million tonnes of LPG in 2024-25, of which only 12.8 million tonnes were produced domestically, with the remainder imported. 85-90 per cent of imports came from countries, like Saudi Arabia, that rely on the strait for transit.While there is enough crude oil available from alternative sources, such as Russia, replacing any loss of LPG supplies is more time-consuming, as other alternative sources are largely located in the United States and Canada.
The disruption has forced oil companies to prioritise household cooking gas supplies, leading to restrictions on commercial users, such as hotels and restaurants.
Measures taken by the government
To manage the supply disruption, the government has introduced a series of temporary measures:
* Additional kerosene allocation: States have been given 48,000 kilolitres of additional kerosene, over and above the regular monthly quota of about 1 lakh kilolitres, for household cooking needs.
* Alternate fuels for hospitality sector: Environmental regulators have been asked to permit biomass, refuse-derived fuel (RDF) pellets and coal as alternate fuels for hotels and restaurants for one month.
* Limited commercial LPG supply: Oil marketing companies will allocate 20 per cent of the average monthly commercial LPG demand to ensure essential businesses continue to receive supplies.
* Demand management: The minimum refill interval for LPG cylinders has been increased to 25 days in urban areas and 45 days in rural areas.
Why is kerosene being used again?
The increase in kerosene allocation is notable because India has spent the past decade attempting to phase out the fuel due to pollution concerns and its misuse for adulterating petrol.
Delhi was officially declared the first kerosene-free city in India on June 17, 2014. The initiative, launched in 2012, replaced kerosene usage with LPG connections for households, aiming to reduce pollution and fire risks.
Mass roll-out of LPG through grant of free connections to the poor under the Pradhan Mantri Ujjwala Yojana was intended to cut the usage of firewood and coal for cooking, especially in rural households.
However, with LPG supplies under pressure, officials said kerosene is being temporarily reintroduced to ensure households continue to have access to cooking fuel.
Is there a fuel shortage?
The government says the country is not facing a shortage of petrol or diesel despite the global disruption.
* Refineries are operating at high capacity utilisation, in some cases exceeding 100 per cent.
* No petrol pump or LPG distributor has run dry.
* Crude oil supplies have been secured from multiple sources. India has diversified its crude sources to around 40 countries from 27 previously.
Why are LPG supplies under pressure?
Before the crisis, about 60 per cent of LPG imports came from Gulf countries such as Qatar, Saudi Arabia, the UAE and Kuwait. Those supplies are blocked.
The government says LPG cargoes are now being sourced from the United States, Norway, Canada, Algeria and Russia, in addition to available Gulf supplies.
Domestic LPG production has also been increased by 28 per cent by redirecting refinery output.
How the government is preventing hoarding
Officials say a surge in LPG bookings has largely been driven by panic buying rather than actual supply shortages.
To curb hoarding and diversion, delivery authentication codes will be expanded to 90 per cent of consumers, requiring confirmation before cylinders are marked delivered.
A three-member committee will assess genuine commercial demand across sectors and regions.
Commercial LPG sales are being regulated temporarily to prevent black-market diversion.
What Next?
Officials say the measures are temporary responses to an extraordinary global energy disruption.
The government is monitoring supply flows and alternative import routes while prioritising household cooking fuel and essential sectors such as hospitals and educational institutions.
The Strait of Hormuz has remained disrupted for nearly two weeks, making the current situation one of the most severe energy supply shocks in recent decades.
