India’s LPG Lifeline Shifts Westward, Freight Costs Ignite

India, the world’s second-largest LPG importer, has traditionally sourced most of its supply from West Asia. However, ongoing geopolitical tensions and supply chain risks are forcing refiners and distributors to diversify toward longer-haul suppliers in the US and Australia. This shift, while ensuring continuity, comes with significant cost implications.  

Key Highlights  

• India shifts LPG sourcing from West Asia to US and Australia  
• Conflict-driven supply chain risks prompt diversification  
• Longer shipping routes raise freight and insurance costs  
• Analysts project 10–15% increase in LPG landing prices  
• Potential subsidy expansion to protect rural households  
• Calls for boosting domestic production and renewable adoption  
  
  

Sources: Business Standard, Economic Times, Reuters