Will Your LPG Issue Completely Solve Soon? All You Need To Know As Hormuz Opens

Geopolitical tensions involving the US and Iran disrupted global LNG supply chains, affecting shipping routes and production facilities. This led to widespread uncertainty in energy markets, reduced availability, and price volatility. Import-dependent countries like India faced early pressure as global supplies tightened and energy security concerns increased significantly worldwide.

India saw a decline of around 14% in LNG imports compared to last year as prices surged and supply chains were disrupted. Indian companies reduced spot market purchases and postponed tenders. With nearly 60% dependence on imports, the disruption raised concerns over energy security and stable fuel availability.

Global LNG prices fell from about $25 per million BTU to nearly $16 per BTU, marking a drop of almost 50%. The decline came after initial panic eased and supply conditions improved. This sudden correction created a favourable buying window for import-dependent countries like India in global energy markets.

Indian companies including GAIL, BPCL, and GSPC increased LNG purchases from the spot market as prices fell. Deals were secured at around $16 per BTU for April–June delivery. The move reversed earlier cautious buying and helped India lock in lower-cost energy supplies amid improving global price conditions.

Despite temporary relief, India remains heavily dependent on imported gas, meeting nearly 60% of demand through external sources. While the government aims to build a gas-based economy, reliance on volatile global markets continues. Experts stress the need for domestic production growth, diversification, and long-term energy security planning.