New Delhi, March 2026 – As India battles its worst liquefied petroleum gas (LPG) shortage in decades, triggered by geopolitical tensions in West Asia, an unlikely partner nearly 20,000 kilometres away has stepped forward to extend support. Argentina has significantly ramped up its LPG exports to India, shipping around 50,000 tonnes in the first three months of 2026 alone—more than double the 22,000 tonnes supplied throughout the entire previous year.
The crisis stems from disruptions in the Strait of Hormuz, a critical maritime chokepoint through which nearly 90% of India’s LPG imports from the Gulf region traditionally pass. India imports about 60% of its total LPG requirements, with the Middle East accounting for a dominant share. The ongoing conflict involving the US, Israel, and Iran has severely restricted shipping traffic, leading to a sharp drop in supplies and forcing the country to scramble for alternatives.
Impact on Daily Life and Economy
Households across India, which rely on LPG for cooking through over 340 million connections, are facing long queues and delays of several days or even weeks for cylinder refills. In several cities, including Delhi and others, reports of black-market prices surging have emerged, even as the government maintains subsidized rates for domestic users.
The commercial sector has been hit particularly hard. Hotels, restaurants, and small eateries—many of which depend almost entirely on LPG—have reported menu cuts, shortened operating hours, and in some cases, warnings of potential closures. Industries using LPG have also seen allocations curtailed to prioritize household supply. Domestic sales by major oil marketing companies reportedly declined by around 17% in the first half of March compared to the previous year, with buffer stocks providing only limited cover.
Government Measures and Diversification Efforts
The Indian government has activated emergency responses, including prioritizing domestic LPG production by redirecting hydrocarbons, promoting piped natural gas (PNG) connections where infrastructure exists, and exploring alternatives such as kerosene or induction cooktops for households. Control rooms have been set up in states to monitor the situation, while authorities have issued warnings against hoarding and black-marketing. The Centre has also cautioned commercial establishments against levying extra “LPG charges” on customers.
In parallel, Indian importers have aggressively diversified sourcing. While efforts continue to secure supplies from the US and reroute some Gulf cargoes (including safe transits by Indian-flagged vessels hugging alternative routes near the Iranian coast), Argentina has quickly emerged as a notable swing supplier. Shipments largely originate from the port of Bahia Blanca and undertake the long-haul voyage to Indian ports such as Dahej in Gujarat. These journeys are costlier and take significantly longer—around 30-35 days—than the usual 7-10 day Gulf routes, but they have helped bridge part of the immediate gap.
Argentina’s increased production, supported by natural gas resources including from the Vaca Muerta formation, has enabled this surge. Before 2024, shipments to India were negligible; the country is now positioning itself as a growing player in India’s energy import basket. Bilateral trade between India and Argentina has also been expanding, with India ranking as one of Argentina’s top trading partners.
Looking Ahead
The situation remains fluid as of late March 2026. While some relief is expected from incoming cargoes and boosted domestic output, challenges persist, particularly for urban consumers and businesses. The crisis has underscored India’s vulnerabilities in energy security—over-reliance on a single chokepoint for a fuel that touches millions of kitchens daily.
Longer term, experts anticipate accelerated efforts toward greater domestic production, expanded PNG infrastructure, and broader diversification of LPG sources. The unexpected helping hand from Argentina highlights how global supply chains are rapidly realigning in response to geopolitical shocks, turning distant nations into strategic partners.
For consumers in affected areas, checking with local distributors or using official booking apps remains advisable, while the government continues to monitor and manage the evolving supply scenario. This episode serves as a reminder of the interconnected nature of global energy markets and the importance of strategic resilience.
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