India's Cooking Gas Crisis Worsens as LPG Imports Plummet

India's oil marketing companies are facing severe losses due to the rising fuel costs, with estimates indicating deep losses of Rs.8-9 per litre on diesel and petrol sales, and Rs.300 per cylinder on domestic liquefied petroleum gas (LPG) sales.

The crisis has led to a decline in India's domestic LPG customer base for the first time in over a decade, with around 6.2 million households dropping off between April and August.

The government's decision to make Aadhaar authentication compulsory for buying subsidised domestic cooking gas has added another layer of complexity to an already fraught process.

India has turned to the US for help, but LPG imports from the US have crashed by around 70% compared to August, with supplies from the UAE replacing those from the US as India's largest supplier.

The crisis has exposed India's energy security vulnerability, with imports accounting for 66% of its LPG consumption.