India buys first Iranian LPG cargo in years amid Hormuz disruption, supply crunch

India has purchased its first cargo of Iranian liquefied petroleum gas (LPG) in several years after the United States temporarily eased sanctions on Tehran’s oil and refined fuel exports, according to trade data and industry sources cited by Reuters. The move comes as India faces supply disruptions due to tensions in West Asia and restrictions on shipments through the Strait of Hormuz, a key global energy route.

India had stopped importing energy from Iran in 2019 under pressure from Western sanctions, forcing refiners to depend heavily on suppliers from other West Asian countries. The latest purchase signals a possible short-term shift in sourcing as the country deals with one of its tightest LPG supply situations in years.

According to industry sources, the sanctioned tanker Aurora, carrying Iranian LPG, is expected to arrive soon at the west coast port of Mangalore. The cargo was initially bound for China but was diverted, according to shipping data. The shipment will be shared among the three state-run fuel retailers — Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

Sources said the cargo was bought through a trader and payment is likely to be made in rupees. India is also exploring the possibility of purchasing additional Iranian LPG shipments if supply disruptions continue. However, a senior government official said he was not aware of any confirmed Iranian cargoes, indicating that the situation remains fluid.

India, the world’s second-largest LPG importer, has been hit hard by the disruption of energy shipments through the Strait of Hormuz, following the escalation of the U.S.-Israel conflict with Iran. The route handles a significant share of global oil and gas trade, and delays have affected supply to several Asian countries.

The supply pressure has forced the government to prioritise domestic cooking gas needs, while industrial consumers have faced cuts in allocation. India consumed about 33 million tonnes of LPG last year, with imports meeting nearly 60% of total demand. Around 90% of these imports come from the Middle East, making the country highly vulnerable to regional disruptions.

Shipping data shows that India has also been working to move stranded LPG cargoes from the Persian Gulf region. Several tankers have already been redirected, while empty vessels are being used to lift available supplies.

Industry officials said the Iranian cargo is a temporary measure to stabilise supply, but it highlights how geopolitical tensions in West Asia are directly affecting India’s fuel security and import strategy.