India Now 90% More Vulnerable to Energy Crisis After Losing Key Supply Route

The closure of the Strait of Hormuz following Iran’s retaliatory strikes against US-Israel assets in the region has pushed India into a severe energy crisis, with the country’s liquefied petroleum gas (LPG) supply chain facing full collapse.

The impact is already being felt across the country. Panic buying has surged in several cities, while authorities and suppliers are reportedly considering rationing measures to manage dwindling stocks and prevent shortages.

India’s LPG consumption has been rising steadily, driven largely by the government’s flagship welfare initiative, the Pradhan Mantri Ujjwala Yojana, which has expanded access to clean cooking fuel for low-income households. Today, roughly 60 percent of Indian households rely on LPG as their primary cooking source.

Demand hit record levels in February 2026, reaching approximately 2.8 million tons for the month, up 10 percent year-on-year.

While alternative suppliers such as the United States, Russia, and Norway remain potential options, replacing Gulf volumes in the short term presents major challenges for India. Higher costs, longer shipping routes, and logistical constraints are expected to limit immediate relief in the coming months.

All countries should now realize that blocking key transit routes like Hormuz can quickly ripple across markets, impacting not just crude oil, but also essential fuels that millions depend on a daily basis.