Indian natural gas importers have ramped up purchases from the spot market after prices dropped by almost 40 percent from their peaks.
Companies like Bharat Petroleum, GAIL India, and Gujarat State Petroleum have bought liquefied natural gas (LNG) shipments for delivery between April and June at below $16 per million British thermal units, according to a report by Bloomberg citing energy traders.
The LNG supplies were purchased via tenders that closed on April 15, the report added. Earlier, Indian companies’ spot purchases had declined because of expensive deals.
Currently, spot LNG prices, which had more than doubled after the start of the war, are at their lowest level in over a month. Spot LNG prices had earlier jumped to roughly $25 per million Btu.
High costs had even led to the cancellation of purchase tenders, in turn limiting supply in the country.
The government had imposed restrictions on LNG supply to commercial establishments.
Out of the total LPG consumption in India, about 86 percent comes from households, while the rest is from commercial establishments like restaurants, eateries, and hotels.
During the last decade, the country’s LPG consumption has increased by 74 percent, mainly because of the government’s push to shift households from polluting and hazardous fuels to cleaner fuel.
So far, the government has added 10 crore households under the Pradhan Mantri Ujjwala Yojana. As of March 1, 2025, the total number of active domestic LPG consumers in India stood at 32.94 crore, covering almost every household in the country.
While 60 percent of India’s LPG consumption depends on imports, about 90 percent of these imports were from the Gulf region before the war.
Both sides in the conflict attacked each other’s energy assets in the region. Qatar’s Ras refinery, which exports a large amount of natural gas, was among the first energy units to come under attack.
While peace talks are ongoing, experts are concerned that it could take months to return to normal energy supplies due to the damage caused during the war.
