Indian Oil's LPG import from Iran.
Indian Oil Corporation (IOC) has purchased a shipment of liquefied petroleum gas (LPG) from Iran, marking the first such transaction since 2018. The move comes as India grapples with a tightening supply situation exacerbated by ongoing disruptions in the Middle East, particularly around the Strait of Hormuz.
The cargo, totaling approximately 43,000 tonnes, will be shared among Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). However, the volume is estimated to cover only about half a day’s worth of India’s total LPG demand, highlighting the scale of the current supply deficit.
The supply crunch has led to rationing measures in some areas, with some households turning to alternative fuel sources. The resumption of LPG imports from Iran reflects efforts to diversify supply channels and mitigate the impact of geopolitical tensions on India’s energy security.
This purchase signifies a notable shift in India’s procurement strategy, driven by immediate supply concerns. The long-term implications of this renewed trade relationship with Iran, particularly in the context of international relations and energy market dynamics, remain to be seen.
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