Fuel trade between Iran and India has started once again, which is considered a relief news for the country. The first LPG ship from Iran is expected to reach India this week. Oil import from Iran was almost completely stopped from the year 2018-19, because in 2018-19, America had imposed strict sanctions on Iran, due to which India was forced to stop the import. However, after the recent war, America has lifted some restrictions on Tehran’s crude oil, due to which energy trade between the two countries seems to be resuming.
According to ET’s report, the first consignment of Iranian LPG is scheduled to arrive this week and more consignments of crude oil and LPG are expected to arrive in the coming days. According to the report, oil refining companies are in talks with the National Iranian Oil Company, so that maximum crude oil and LPG can be imported as soon as possible. However, it is not yet clear how much supply will be available in a short time.
when was the last deal done
According to data company Kpler, Indian Oil last purchased LPG from Iran in June 2018. According to the company, this time the incoming consignment includes about 43,000 tonnes of butane and propane gas. This quantity is enough to meet only half a day’s needs in India, where LPG is commonly used for cooking. The country imports about two-thirds of its total needs from outside, out of which 90% comes from the Middle East. This supply mostly comes through the Sea of Hormuz. After the war started this route was almost closed.
LPG consumption
The country imports about 60% of its total LPG requirements. Domestic LPG production in India has increased by 40% since the war started. With this, about 56% of the total consumption is being met, but still the need for imports remains. According to PPAC data, India’s total consumption in February 2026 was 2.82 million metric tons. The supply of LPG is considered more important than crude oil, because in the country it is mainly used for cooking.
According to shipping data from energy data company Vortexa, India’s crude oil imports between March 1 and March 18 were down about 23% compared to the same period last month. If the Strait of Hormuz remains closed for the entire month, then experts estimate that the import of crude oil may reduce by about 20% in the month of March.